IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/77992.html
   My bibliography  Save this paper

Modified Grubel-Lloyd Index: Intra-industry Trade and Intra-regional Trade in East Asia

Author

Listed:
  • Widodo, Tri

Abstract

Intra-industry trade (IIT) has increased significantly in the world trade. Meanwhile, intra-regional trade has also risen in parallel with the proliferation of regional economic integrations. One of the prominent empirical tools widely employed to analyze IIT is the Grubel-Lloyd index (Grubel and Lloyd [1975]). This paper aims to examine the intra-industry trade in the intra-regional trade in East Asia. Firstly, we modify the Grubel-Lloyd index by considering intra- and inter-regional trade. Secondly, the modified index is then applied to investigate IIT in East Asia. We find that the intra-industry trade has increased significantly in the region. The increases are greater in the intra-regional trade than in the inter-regional trade. The inter-industry trade of Japan and Indonesia is still dominant in both intra- and inter-regional trade. In contrast, in the case of the Philippines, its intra-industry trade has overtaken the inter-industry trade in both intra- and inter-regional trade.

Suggested Citation

  • Widodo, Tri, 2009. "Modified Grubel-Lloyd Index: Intra-industry Trade and Intra-regional Trade in East Asia," MPRA Paper 77992, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:77992
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/77992/1/MPRA_paper_77992.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brander, James & Krugman, Paul, 1983. "A 'reciprocal dumping' model of international trade," Journal of International Economics, Elsevier, vol. 15(3-4), pages 313-321, November.
    2. Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
    3. Clive Hamilton & Paul Kniest, 1991. "Trade liberalisation, structural adjustment and intra-industry trade: A note," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(2), pages 356-367, June.
    4. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
    5. Kei-Mu Yi, 2003. "Can Vertical Specialization Explain the Growth of World Trade?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 52-102, February.
    6. repec:bla:ecorec:v:47:y:1971:i:120:p:494-517 is not listed on IDEAS
    7. Brander, James A., 1981. "Intra-industry trade in identical commodities," Journal of International Economics, Elsevier, vol. 11(1), pages 1-14, February.
    8. Kojima, Kiyoshi, 1964. "The Pattern of International Trade Among Advanced Countries," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 5(1), pages 16-36, June.
    9. Athukorala, Prema-chandra & Yamashita, Nobuaki, 2006. "Production fragmentation and trade integration: East Asia in a global context," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 233-256, December.
    10. Ng, Francis & Yeats, Alexander, 2003. "Major trade trends in East Asia : what are their implications for regional cooperation and growth," Policy Research Working Paper Series 3084, The World Bank.
    11. Kol, Jacob & Mennes, Loet B. M., 1986. "Intra-industry specialization: Some observations on concepts and measurement," Journal of International Economics, Elsevier, vol. 21(1-2), pages 173-181, August.
    12. Marius Brülhart, 1994. "Marginal Intra-Industry Trade: Measurement and Relevance," Economics Technical Papers 942, Trinity College Dublin, Department of Economics.
    13. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Teodoro Gallucci & Vesselina Dimitrova & Georgi Marinov, 2019. "Interrelation between Eco-Innovation and Intra-Industry Trade—A Proposal for a Proxy Indicator of Sustainability in the EU Countries," Sustainability, MDPI, vol. 11(23), pages 1-13, November.

    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. Guillaume Daudin & Christine Rifflart & Danielle Schweisguth, 2011. "Who produces for whom in the world economy?," Canadian Journal of Economics, Canadian Economics Association, vol. 44(4), pages 1403-1437, November.
    2. 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.
    3. repec:kap:iaecre:v:14:y:2008:i:4:p:355-368 is not listed on IDEAS
    4. Prema-chandra Athukorala, 2011. "Production Networks and Trade Patterns in East Asia: Regionalization or Globalization?," Asian Economic Papers, MIT Press, vol. 10(1), pages 65-95, Winter/Sp.
    5. Mia Mikic & Mochamad Pasha (ed.), 2011. "Fighting Irrelevance: The Role of Regional Trade Agreements in International Production Networks in Asia," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number tipub2597, july-dece.
    6. Tri WIDODO & Diyah PUTRIANI, 2011. "RMB Devaluation and Asean5 Countries’ Exports to the US: Complementary or Substitute?," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 8, pages 169-184, December.
    7. Paulo Bastos & Manuel Cabral, 2007. "The Dynamics of International Trade Patterns," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(3), pages 391-415, October.
    8. Guillaume Daudin & Christine Rifflart & Danielle Schweisguth, 2008. "Value-Added Trade and Regionalization. GTAP Eleventh Annual Conference 'Future of Global Economy', Helsinki, Finland," SciencePo Working papers Main hal-01065996, HAL.
    9. Bridgman, Benjamin, 2012. "The rise of vertical specialization trade," Journal of International Economics, Elsevier, vol. 86(1), pages 133-140.
    10. Giuseppe Ricciardo Lamonica, 2020. "How fragmented is the world economy: evidences from the EORA database," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 74(2), pages 39-48, April-Jun.
    11. Mia Mikic & Mochamad Pasha (ed.), 2011. "Fighting Irrelevance: The Role of Regional Trade Agreements in International Production Networks in Asia," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number tipub2597, july-dece.
    12. repec:hal:spmain:info:hdl:2441/9541 is not listed on IDEAS
    13. Martínez-Zarzoso, Inmaculada & Voicu, Anca M. & Vidovic, Martina, 2011. "CEECs Integration into Regional Production Networks. Trade Effects of EU-Accession," Proceedings of the German Development Economics Conference, Berlin 2011 55, Verein für Socialpolitik, Research Committee Development Economics.
    14. Rahul Sen & Sadhana Srivastava, 2012. "Asia' s international production networks: Will India be the next assembly centre?," Working Papers 11812, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    15. Joe Tharakan & Jacques-François Thisse, 2011. "Market Integration: Trade versus Economic Geography," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume II, chapter 6, Edward Elgar Publishing.
    16. Ganeshan Wignaraja & Jens Krüger & Anna Mae Tuazon, 2013. "Production Networks, Profits, and Innovative Activity : Evidence from Malaysia and Thailand," Trade Working Papers 23391, East Asian Bureau of Economic Research.
    17. Witada Anukoonwattaka & Mia Mikic, 2011. "Prospects for India and lessons for latecomers," STUDIES IN TRADE AND INVESTMENT, in: Witada Anukoonwattaka & Mia Mikic (ed.), India: A New Player in Asian Production Networks?, Studies in Trade and Investment 75, chapter 6, pages 137-142, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    18. Martínez-Zarzoso, Inmaculada & Voicu, Anca M. & Vidovic, Martina, 2011. "CEECs integration into regional and global production networks," University of Göttingen Working Papers in Economics 125, University of Goettingen, Department of Economics.
    19. Götz Zeddies, 2011. "Determinants of international fragmentation of production in European Union," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 38(4), pages 511-537, November.
    20. Elvio Mattioli & Giuseppe Ricciardo Lamonica, 2015. "The Evolution Of The Vertical Specialization In The World Economy (1995 � 2011)," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 69(3), pages 5-26, July-Sept.
    21. repec:spo:wpmain:info:hdl:2441/9541 is not listed on IDEAS
    22. Mia Mikic & Mochamad Pasha (ed.), 2011. "Fighting Irrelevance: The Role of Regional Trade Agreements in International Production Networks in Asia," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number tipub2597, july-dece.
    23. Mia Mikic & Mochamad Pasha (ed.), 2011. "Fighting Irrelevance: The Role of Regional Trade Agreements in International Production Networks in Asia," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number tipub2597, july-dece.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

    Statistics

    Access and download statistics

    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:pra:mprapa:77992. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.