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Progress in Intra-industry Trade in the Greater Mekong Sub-region

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  • Kenji Nozaki

Abstract

The Greater Mekong Sub-region (GMS) attracts investors’ interest today and economic linkage in the GMS is strengthening with the creation of a production network. This paper analyzes the division of labour in the production process by industry. Two industrial sectors are chosen, the clothing industry and automobile industry. Two types of analysis were conducted in this study: one is a detailed analysis of trade figures, with calculation of the Grubel and Lloyd indexes and unit trade value, and the other is the estimation of gravity model. Their results are consistent. In the clothing sector, which is a labour-intensive industry, intra-industry trades include items by both horizontal division of labour and vertical division of labour. In contrast, the automobile sector does not exhibit horizontal division of labour, and signs of vertical division of labour between Thailand and Vietnam are observed. As different types of industry involve the different types of production network, further research will be needed.

Suggested Citation

  • Kenji Nozaki, 2016. "Progress in Intra-industry Trade in the Greater Mekong Sub-region," Foreign Trade Review, , vol. 51(2), pages 147-161, May.
    • Handle: RePEc:sae:fortra:v:51:y:2016:i:2:p:147-161
    DOI: 10.1177/0015732515625708
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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