Abstract

This study examines the impact of patent applications and price discrimination on intra-industry trade in the automotive industry across 45 countries, encompassing Korea and OECD members. To address this, 237 items, classified by the customs office under the HS code at the 6-digit level, were categorized into vehicles, electrical and electronic, and other categories. Panel fixed-effects and random-effects models were employed. The findings suggest that patent applications in the vehicles sector exert a negligible influence on intra-industry trade. Conversely, the electrical and electronic sector, gaining prominence due to the proliferation of trends in autonomous driving and electrification, demonstrates a positive effect on intra-industry trade. This is attributed to the growing global demand for Korean products and the expanded use of imported goods at a level equivalent to domestic products to satisfy the diverse demands of domestic customers. To sustain and enhance competitiveness in the electrical and electronic sector, a concerted effort is essential, encompassing not only corporate-level strategic decisions but also governmental policy endeavors, including legal and regulatory reforms and the establishment of integrated governance systems.

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