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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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    3. Saon Ray & Smita Miglani, 2016. "Innovation (and Upgrading) in the Automobile Industry: The Case of India," Working Papers id:10794, eSocialSciences.
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    5. Yue Lin, 2018. "Post-crisis China impact on trade integration and manufacturing competitiveness between Argentina and Brazil," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 16(2), pages 147-170, April.
    6. Ďurčová, Júlia & Mirdala, Rajmund, 2016. "Offshoring Intensities and Skill Upgrading of Employment in the Slovak Republic," MPRA Paper 79921, University Library of Munich, Germany.
    7. Junqian Xu & Yong Liu & Liling Yang, 2018. "A Comparative Study of the Role of China and India in Sustainable Textile Competition in the U.S. Market under Green Trade Barriers," Sustainability, MDPI, vol. 10(5), pages 1-21, April.
    8. Andoni Maiza & Ricardo Bustillo, 2018. "Analysis of the relevance of China’s development for main European automotive manufacturing countries," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(3), pages 403-424, September.
    9. 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.
    10. Dongao Li & Songdong Shen, 2022. "Social Environment and Healthy Investment Behavior: Joint Influence of Culture and Institution on China," IJERPH, MDPI, vol. 19(1), pages 1-17, January.
    11. Saon Ray & Smita Miglani, 2018. "Upgrading in the Indian automobile sector: The role of lead firms," Indian Council for Research on International Economic Relations (ICRIER) Working Paper 360, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.

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    More about this item

    Keywords

    China; India; Vertical intra-industry trade; Fragmentation; Automotive sector;
    All these keywords.

    JEL classification:

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

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