How intra-industry trade is related to income difference and foreign direct investment in east AsiaECU Publications Pre. 2011
Document TypeJournal Article
FacultyBusiness and Law
SchoolAccounting, Finance and Economics
AbstractThis 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.
Citation InformationChan-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/