Vertical intra-industry trade and product quality: the case of South Korea, 1996â€“2003
This paper contributes to empirical research of intra-industry trade, especially vertical intra-industry trade (VIIT), by two aspects. Firstly, we separate VIIT into higher-export-price VIIT and lower-export-price VIIT. Secondly, we give attention to R&D and FDI stock in explaining VIIT determinants. Applied to panel data representing South Koreaâ€™s bilateral trade with 15 OECD countries and Taiwan from 1996 through 2003, this alternative makes an intricate understanding of the VIIT determinants possible. Main empirical findings are that South Koreaâ€™s R&D investments focus on price competitiveness while its inward FDI seeks efficiency and its outward FDI seeks a market in this period.
Volume (Year): 1 (2012)
Issue (Month): 3 ()
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