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China and India in the international fragmentation of automobile production

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  • Amighini, Alessia A.

Abstract

We explore the relative positions of China and India in the international fragmentation of automobile production by analyzing disaggregated trade flows, while distinguishing between final and intermediate goods. The size and composition of trade has significantly moved in favor of trade of components over the last decade, but major differences exist between the two countries; China is a net car importer, while India is a net car exporter. We find evidence of the increasing importance of two-way trade in vertically differentiated goods, indicating that China and India are becoming more active participants in the vertical division of labor in automotive production.

Suggested Citation

  • Amighini, Alessia A., 2012. "China and India in the international fragmentation of automobile production," China Economic Review, Elsevier, vol. 23(2), pages 325-341.
  • Handle: RePEc:eee:chieco:v:23:y:2012:i:2:p:325-341
    DOI: 10.1016/j.chieco.2012.01.002
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    References listed on IDEAS

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    Cited by:

    1. Amighini, Alessia A. & Franco, Chiara, 2013. "A sector perspective on Chinese outward FDI: The automotive case," China Economic Review, Elsevier, vol. 27(C), pages 148-161.
    2. Saon Ray & Smita Miglani, 2016. "Innovation (and Upgrading) in the Automobile Industry: The Case of India," Working Papers id:10794, eSocialSciences.
    3. Sadhana Srivastava & Rahul Sen, 2015. "Production fragmentation in trade of manufactured goods in India: prospects and challenges," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 22(1), pages 33-66, June.
    4. Ďurčová, Júlia & Mirdala, Rajmund, 2016. "Offshoring Intensities and Skill Upgrading of Employment in the Slovak Republic," MPRA Paper 79921, University Library of Munich, Germany.
    5. repec:gam:jsusta:v:10:y:2018:i:5:p:1348-:d:143358 is not listed on IDEAS

    More about this item

    Keywords

    China; India; Vertical intra-industry trade; Fragmentation; Automotive sector;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F19 - International Economics - - Trade - - - Other

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