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Country-specific factors and the pattern of intra-industry trade in China's manufacturing

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  • Zhaoyong Zhang

    (NUCB and Edith Cowan University, Australia)

  • LI Chuan

    (Jinan Science & Technology Information Research Institute, Shandong, China)

Abstract

Over the past few decades there have been extensive empirical and theoretical studies of the determination of intra-industry trade (IIT), but mostly for the industrialized countries. This paper aims to assess the trends and pattern of intra-industry trade and structural adjustment in China's manufacturing sector associated with its trade liberalization using data spanning from 1990 to 2000. In particular, we distinguish intra-industry trade as either horizontally or vertically differentiated, and examine how the various country-specific factors affect the intensity of China's horizontally and vertically differentiated intra-industry trade with its major trading partners, and how trade liberalization changes the pattern of China's IIT and integration with the East Asian region. These issues have important policy implications for product differentiation strategy and labour adjustment. Copyright © 2006 John Wiley & Sons, Ltd.

Suggested Citation

  • Zhaoyong Zhang & LI Chuan, 2006. "Country-specific factors and the pattern of intra-industry trade in China's manufacturing," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(8), pages 1137-1149.
    • Handle: RePEc:wly:jintdv:v:18:y:2006:i:8:p:1137-1149
    DOI: 10.1002/jid.1288
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    References listed on IDEAS

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    Cited by:

    1. C.T. Vidya & K.P. Prabheesh, 2019. "Intra-Industry Trade Between India And Indonesia," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 0(12th BMEB), pages 1-20, January.
    2. Justyna Lapinska, 2016. "Determinant Factors Of Intra-Industry Trade: The Case Of Poland And Its European Union Trading Partners," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(2), pages 251-264, June.
    3. 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.
    4. Jámbor, Attila, 2013. "Country-specific determinants of horizontal and vertical intra-industry agri-food trade: the case of Bulgaria and Romania," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 7(4-5), pages 1-8.
    5. Maylene Y. Damoense-Azevedo & André C. Jordaan, 2012. "Factors influencing bilateral intra-industry trade in the auto industry: the case of South Africa," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 63-82.
    6. Attila Jambor, 2013. "Country-specific determinants of horizontal and vertical intra-industry agri-food trade of the Visegrad Countries," FIW Working Paper series 104, FIW.
    7. Jambor, Attila & Torok, Aron, 2013. "Intra-industry agri-food trade of the Baltic Countries," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158684, Agricultural Economics Society.
    8. Justyna Lapinska, 2014. "Determinants of Intra-Industry Trade in Agricultural and Food Products between Poland and EU Countries," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 3, pages 159-172, September.
    9. Sawyer, William C. & Sprinkle, Richard L. & Tochkov, Kiril, 2010. "Patterns and determinants of intra-industry trade in Asia," Journal of Asian Economics, Elsevier, vol. 21(5), pages 485-493, October.
    10. Jámbor, Attila, 2014. "A horizontális és vertikális ágazaton belüli agrárkereskedelem meghatározó tényezői az EU új tagországaiban [Determinants of horizontal and vertical intra-industry agri-food trade in the new EU mem," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 544-565.

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