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Horizontal and Vertical Intra-Industry Trade: The Case of Asean Trade in Manufactures

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  • Dene Hurley

Abstract

For over two decades prior to the Asian Currency crisis of 1997, the economies of the ASEAN-5 underwent an impressive economic expansion while increasing their openness to trade. This paper examines the role of intra-industry trade (IIT) in intra-ASEAN trade. Focusing on trade in manufactures, it breaks down IIT by vertically (VIIT) and horizontally (HIIT) differentiated goods, and identifies country-specific factors which drive them. By 1996, while 60% of the total intra-ASEAN trade constituted IIT, the share of IIT in trade in manufactures was even higher, dominated by VIIT which reflected differences in capital-labor intensity. Market size and foreign direct investment also influenced both VIIT and HIIT. [F14]

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  • Dene Hurley, 2003. "Horizontal and Vertical Intra-Industry Trade: The Case of Asean Trade in Manufactures," International Economic Journal, Taylor & Francis Journals, vol. 17(4), pages 1-14.
    • Handle: RePEc:taf:intecj:v:17:y:2003:i:4:p:1-14
    DOI: 10.1080/10168730300080023
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    Cited by:

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    2. Chen-Chen Yong & Siew-Yong Yew & Mui-Yin Chin, 2019. "Spatial Panel Analysis On Asean–China Trade Links," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(03), pages 709-726, June.
    3. Vogiatzoglou, Klimis, 2005. "Varieties or Qualities? Horizontal and Vertical Intra-industry Trade within the NAFTA Trade Bloc," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(2), pages 1-13.
    4. Jayanthakumaran, Kankesu & Sanidas, Elias, 2005. "The Impact of Unilateral and Regional Trade Liberalisation on the Intra-ASEAN 5 Founding Nations' Exports and Export-GDP Nexus," Economics Working Papers wp05-14, School of Economics, University of Wollongong, NSW, Australia.

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