The Determinants of China-Japan-Koreas Vertical Intra Industry Trade to ASEAN4 countries
East Asia has been witnessing an increased trade in parts and components over the last decade. This fact has increased the importance of Intra Industry Trade (IIT) within the region. To differentiate the types of IIT, this paper employs two types of threshold. The first one follows the work of Abd-el-Rahman (1991), Greenaway, Hine, and Milner (1994), and FontagnÃ©, Freudenberg, and PÃ©ridy (1997), which mainly use a 15% threshold, the second one is based from the work of Fukao (2003) that employs 25% threshold. Should we know to which degree ASEAN-4â€™s exports are dispersed, we could easily extract the proper policy to cope with any economic shocks. Thus said, since China-Japan-Korea (CJK)â€™s Vertical IIT to ASEAN4 is a very important variable to provide cushions of any possible shocks therefore, it is very crucial to figure out the factors that determine the CJKâ€™s Vertical IIT in South East Asia. Employing static panel data models, this paper concludes that logistic performance and the difference in wage or income are major determinants for the CJKâ€™s Vertical IIT trend in ASEAN4 countries.
|Date of creation:||May 2012|
|Date of revision:||May 2012|
|Contact details of provider:|| Phone: (021)-7272425|
Web page: http://www.feb.ui.ac.id
More information through EDIRC
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 & Michaël Freudenberg & Nicolas Peridy, 1997. "Trade Patterns Inside the Single Market," Working Papers 1997-07, CEPII research center.
- Horácio Faustino, 2008. "Intra-Industry Trade and Revealed Comparative Advantage: An Inverted-U Relationship," Working Papers Department of Economics 2008/03, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Kyoji Fukao & Hikari Ishido & Keiko Ito, 2003.
"Vertical Intra-Industry Trade and Foreign Direct Investment in East Asia,"
03001, Research Institute of Economy, Trade and Industry (RIETI).
- Fukao, Kyoji & Ishido, Hikari & Ito, Keiko, 2003. "Vertical intra-industry trade and foreign direct investment in East Asia," Journal of the Japanese and International Economies, Elsevier, vol. 17(4), pages 468-506, December.
- Fukao, Kyoji & Ishido, Hikari & Ito, Keiko, 2003. "Vertical Intra-Industry Trade and Foreign Direct Investment in East Asia," Discussion Paper Series a434, Institute of Economic Research, Hitotsubashi University.
- Falvey, Rodney E., 1981. "Commercial policy and intra-industry trade," Journal of International Economics, Elsevier, vol. 11(4), pages 495-511, November.
- Harvie, Charles & Lee, Hyun-Hoon, 2002. "New Regionalism in East Asia: How Does It Relate to the East Asian Economic Development Model?," Economics Working Papers wp02-10, School of Economics, University of Wollongong, NSW, Australia.
- Kawai, Masahiro & Wignaraja, Ganeshan, 2008. "Regionalism as an Engine of Multilateralism: A Case for a Single East Asian FTA," Working Papers on Regional Economic Integration 14, Asian Development Bank.
- Kawai, Masahiro, 2005. "East Asian economic regionalism: progress and challenges," Journal of Asian Economics, Elsevier, vol. 16(1), pages 29-55, February.
- Prema-chandra Athukorala, 2005.
"Product Fragmentation and Trade Patterns in East Asia,"
Asian Economic Papers,
MIT Press, vol. 4(3), pages 1-27, October.
- Prema-chandra Athukorala, 2003. "Product Fragmentation and Trade Patterns in East Asia," Departmental Working Papers 2003-21, The Australian National University, Arndt-Corden Department of Economics.
- Ryuhei Wakasugi, 2007. "Vertical Intra-Industry Trade and Economic Integration in East Asia," Asian Economic Papers, MIT Press, vol. 6(1), pages 26-39, February.
- Toshihiro Okubo, 2004. "Intra-industry Trade and Production Networks," IHEID Working Papers 13-2004, Economics Section, The Graduate Institute of International Studies.
When requesting a correction, please mention this item's handle: RePEc:lpe:wpecbs:201205. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Muhammad Halley Yudhistira)
If references are entirely missing, you can add them using this form.