IDEAS home Printed from https://ideas.repec.org/a/wsi/serxxx/v63y2018i03ns0217590815500915.html
   My bibliography  Save this article

Determinants Of South Korea’S Intra-Industry Trade With Her Major Trading Countries In The Manufacturing Sector

Author

Listed:
  • SEUNG JIN KIM

    (Department of East Asian Studies, University of Malaya, 50603 Kuala Lumpur, Malaya)

  • BYUNG TAK CHO

    (Korea Productivity Center, Seoul, South Korea)

Abstract

This paper analyzed how South Korea’s intra-industry trade (IIT) with her major trading countries (i.e., China, the USA, and Japan (CUJ)) in the manufacturing sector changed over time for the period of 1994–2011. It was found that South Korea’s IIT with China mainly increased through economies of scale (ES), the ratio of inward and outward foreign direct investment to total investment (FDI), the ratio of intermediate cost to total cost (II), and R&D intensity (RD). On the other hand, South Korea’s IIT with the USA was found to mainly increase through ES, FDI, and RD. Finally, RD, FDI, and II variables are found to be the most important determinants for South Korea’s IIT with Japan.

Suggested Citation

  • Seung Jin Kim & Byung Tak Cho, 2018. "Determinants Of South Korea’S Intra-Industry Trade With Her Major Trading Countries In The Manufacturing Sector," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(03), pages 731-758, June.
    • Handle: RePEc:wsi:serxxx:v:63:y:2018:i:03:n:s0217590815500915
    DOI: 10.1142/S0217590815500915
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0217590815500915
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0217590815500915?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Caves, Richard E, 1981. "Intra-Industry Trade and Market Structure in the Industrial Countries," Oxford Economic Papers, Oxford University Press, vol. 33(2), pages 203-223, July.
    2. Tharakan, P. K. M., 1984. "Intra-industry trade between the industrial countries and the developing world," European Economic Review, Elsevier, vol. 26(1-2), pages 213-227.
    3. Gary Hufbauer, 1970. "The Impact of National Characteristics & Technology on the Commodity Composition of Trade in Manufactured Goods," NBER Chapters, in: The Technology Factor in International Trade, pages 145-231, National Bureau of Economic Research, Inc.
    4. Antonio Aquino, 1978. "Intra-industry trade and inter-industry specialization as concurrent sources of International Trade in manufactures," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 114(2), pages 275-296, June.
    5. Rosanna Pittiglio, 2012. "Horizontal and Vertical Intra-industry Trade: An Empirical Test of the ‘Homogeneity Hypothesis’," The World Economy, Wiley Blackwell, vol. 35(7), pages 919-945, July.
    6. Rudolf Loertscher & Frank Wolter, 1980. "Determinants of intra-industry trade: Among countries and across industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 116(2), pages 280-293, June.
    7. Emilio Pagoulatos & Robert Sorensen, 1975. "Two-way International trade: An econometric analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 111(3), pages 454-465, September.
    8. Greenaway, David & Hine, Robert C & Milner, Chris, 1995. "Vertical and Horizontal Intra-industry Trade: A Cross Industry Analysis for the United Kingdom," Economic Journal, Royal Economic Society, vol. 105(433), pages 1505-1518, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Young Lee, 1989. "A study of the determinants of intra-industry trade among the pacific basin countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 125(2), pages 346-358, June.
    2. P. Tharakan, 1986. "The intra-industry trade of Benelux with the developing world," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 122(1), pages 131-149, March.
    3. Katrakilidis, Constantinos P. & Mardas, Dimitri, 2011. "Intra-industry Trade in Agricultural Products at intra-EC level: The Impact of the Common Agricultural Policy (CAP) Funds," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(2).
    4. Pittiglio, Rosanna, 2009. "The Intra-industry Trade for a Highincome Country: New Empirical Evidence for Italy," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 62(2), pages 233-254.
    5. Don Clark & Denise Stanley, 2003. "Determinants Of Intraindustry Trade Between The United States And Industrial Nations," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 1-17.
    6. Dimitri Mardas & Chistos Nikas, 2008. "European Integration, Intra-industry Trade in Vertically Differentiated Products and the Balkan Countries," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 14(4), pages 355-368, November.
    7. Duc-Loi Phan & Olivier Gaussens & Claude Clair, 1984. "Le commerce international intra-branche et ses déterminants d'après le schéma de concurrence monopolistique : une vérification empirique," Revue Économique, Programme National Persée, vol. 35(2), pages 347-378.
    8. Bruno Henry de Frahan & Patricia Libert, 1996. "Le commerce intra-banche dans l'industrie agro-alimentaire européenne. Une nouvelle forme de globalisation," Économie rurale, Programme National Persée, vol. 234(1), pages 78-88.
    9. Ernesto Somma, 1994. "Intra-industry trade in the European computers industry," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(4), pages 784-799, December.
    10. Mónica Rivera, 2014. "Trade patterns in the process of European integration: Evidence for the intraindustrial exchanges of a Mediterranean peripheral region," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 227-249, January.
    11. Frahan, Bruno Henry de & Tharakan, Joe, 1998. "Horizontal And Vertical Intra-Industry Trade In The Processed Food Sector," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20903, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Rosanna Pittiglio & Filippo Reganati, 2012. "Vertical intra-industry trade in higher and lower quality: a new approach of measuring country-specific determinants," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 44-62.
    13. Antonella Bellino & Giuseppe Celi, 2016. "The Role of Migration in the Variety and Quality of Trade: Evidence from Germany," German Economic Review, Verein für Socialpolitik, vol. 17(1), pages 1-25, February.
    14. J. Vicente Blanes Cristobal, 1997. "El comercio intra-industrial de España con los países de la comunidad europea(1982-1990):determinantes y efectos de su integración," Working Papers wpdea9704, Department of Applied Economics at Universitat Autonoma of Barcelona.
    15. Horácio Faustino & Nuno Leitão, 2007. "Intra-Industry Trade: A Static and Dynamic Panel Data Analysis," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 13(3), pages 313-333, August.
    16. Hoang, Viet, 2019. "The Dynamics of Agricultural Intra-Industry Trade: A Comprehensive Case Study in Vietnam," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 74-82.
    17. Sagnik Bagchi & Surajit Bhattacharyya, 2021. "Industry-level determinants of India’s vertical and horizontal IIT," Indian Economic Review, Springer, vol. 56(1), pages 113-145, June.
    18. Steven Globerman & James Dean, 1990. "Recent trends in intra-industry trade and their implications for future trade liberalization," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 126(1), pages 25-49, March.
    19. Claudy Culem & Lars Lundberg, 1986. "The product pattern of intra-industry trade: Stability among countries and over time," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 122(1), pages 113-130, March.
    20. Imre Ferto & Károly Attila Soós, 2012. "Controversial issues in factors determining intra-industry trade," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 132-148.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:serxxx:v:63:y:2018:i:03:n:s0217590815500915. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ser/ser.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.