Abstract

The purpose of this paper is to investigate the structure and determinants of intra- industry trade (IIT) in Korea. The results conform to what may be expected under the theory of IIT. In particular, it shows that as capital stock increased more rapidly than labor, Korea's IIT shifted towards more capital intensive sectors. It also supports the theoretical proposition that the determinants of IIT for final goods are not different from those for intermediate goods. [F12]

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