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Article
How intra-industry trade is related to income difference and foreign direct investment in east Asia
ECU Publications Pre. 2011
  • Chan-Hyun Sohn
  • Zhaoyong Zhang, Prof, Edith Cowan University
Publication Date
1-1-2005
Document Type
Journal Article
Publisher
MIT Press
Faculty
Business and Law
School
Accounting, Finance and Economics
RAS ID
4005
Comments

This article was originally published as: Sohn, C. H., & Zhang, Z. (2005). How intra-industry trade is related to income difference and foreign direct investment in East Asia. Asian Economic Papers, 4(3), 143-156. Original available here

Abstract
This paper investigates how intra-industry trade (IIT) is linked to cross-country income difference and foreign direct investment (FDI). We distinguish IIT as either horizontally or vertically differentiated, using bilateral exports and imports data for Japan and the remaining East Asian countries at the SITC five-digit level over 1990–2000. Our results show that the income difference has a negative relationship with the share of horizontal IIT, but a positive relationship with vertical IIT, and that cross-country FDI has a positive relationship with share of horizontal IIT and a negative relationship with share of vertical IIT.
Disciplines
DOI
10.1162/asep.2005.4.3.143
Citation Information
Chan-Hyun Sohn and Zhaoyong Zhang. "How intra-industry trade is related to income difference and foreign direct investment in east Asia" (2005)
Available at: http://works.bepress.com/zhaoyong_zhang/13/