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The United States direct investment and intra-industry trade with Japan, the Four Tigers and China

Author

Listed:
  • William X. Wei
  • Yu Peng
  • Meina Xu
  • Jin Zhang

Abstract

This study analyses the differences in Intra-Industry Trade (IIT) patterns between the USA and Japan, China and the Four Tigers: Korea, Singapore, Hong Kong and Taiwan. The estimated IIT indices show US-Japan trade with the highest level of IIT and US-China trade with the most rapid growth in IIT. The empirical data shows that US direct investment enhanced its IIT with East Asia countries as a whole and with Japan, the Four Tigers and China separately, but the effects of US FDI on IIT for the three groups are diverse.

Suggested Citation

  • William X. Wei & Yu Peng & Meina Xu & Jin Zhang, 2012. "The United States direct investment and intra-industry trade with Japan, the Four Tigers and China," International Journal of Business and Emerging Markets, Inderscience Enterprises Ltd, vol. 4(2), pages 91-106.
    • Handle: RePEc:ids:ijbema:v:4:y:2012:i:2:p:91-106
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