An Analysis of Intra-Industry Trade between Japan, Malaysia and China
This paper investigates the bilateral trade pattern between Japan, Malaysia and China (JMC) using the intra-industry trade (IIT) index analysis. Our empirical findings revealed the following. First, China shows a higher degree of IIT relation with Japan vis-à-vis Malaysia. Second, to the extent of whether rapid manufacturing development in China is affecting Malaysia’s export to Japan, our analytical evidence demonstrates that the degree of overlapping exports to Japan by Malaysia and China has increased over time. Although this trend appears to be an indication of increasing competition from China in relation to Malaysia’s products in the Japanese market, our empirical evidence – detailing the degree of product similarity between Malaysia and China using the unit value (UV) measurement – shows that both countries’ exports actually comprise mainly vertically differentiated products or different segments of the market in Japan. Nevertheless, the results also reveal that, compared to Malaysia, China is rapidly increasing its export share in horizontally differentiated products or similar market segments.
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Volume (Year): 3 (2011)
Issue (Month): 1 (April)
Pages: 1-30
| Handle: | RePEc:umk:journl:v:3:y:2011:i:1:p:1-30 |
| Contact details of provider: | Postal: Lembah Pantai, 50603 Kuala Lumpur Phone: 603-7967-3600 Fax: 603-7956-7252 Web page: http://ijie.um.edu.my More information through EDIRC
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lionel Fontagné & Michael Freudenberg & Guillaume Gaulier, 2005. "Disentangling Horizontal and Vertical Intra-Industry Trade," Working Papers 2005-10, CEPII research center.
- Lionel Fontagné & Michaël Freudenberg, 1997. "Intra-Industry Trade: Methodological Issues Reconsidered," Working Papers 1997-01, CEPII research center.
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