Analysis Of Intra-industry Trade Research Articles

Does the "Belt and Road Initiative" benefit the environment? Insight from analysis of intra-industry trade in environment goods.

The expansion of the Belt and Road Initiative (BRI) has raised a wide range of concerns about its environmental impact. Therefore, from the perspective of environmental impacts, this study used the two-way fixed effect staggered differences in differences (TWFE Staggered DID) method to examine the impact of the BRI on the Environment Goods (EGs) intra-industry trade (IIT) between China and other Belt and Road (B&R) countries, including a sample of 191 countries, covering the period from 2010 to 2019 for eliminating the impact of COVID-19 and the financial crisis in 2008 and 2009. Because only 135 countries signed a Memorandum of Understanding between 2010 and 2019, this study treated these B&R countries as the study group, and the other 73 countries (non-B&R countries) as the control group. This study described EGs using the 54 6-digit code Environment Goods in Harmonized Commodity Description and Coding System listed in the "APEC LIST OF ENVIRONMENT GOODS" published by the Asia-Pacific Economic Cooperation in 2012, and used the intra-industry trade index proposed by Grubel and Lloyd in 1971 to measuring dependent variable. The research results indicated that the BRI has significantly promoted bilateral EGs IIT. The mechanism test implied that, in addition to direct impacts, the BRI also has indirect impacts by boosting the energy restructuring of B&R countries. These results prove that the BRI has positive impacts on the environment. The heterogeneity test showed that there is a heterogeneous impact depending on the type of IIT, product categorization, B&R countries' income levels, and geographic environment. This study not only gives theoretical and empirical evidence of the positive environmental impacts of the BRI, but also provides practical guidance for the development of EGS IIT between China and B&R countries, thereby contributing to global carbon emissions reduction and environmental governance to some degree.

DAYA SAING EKSPOR KOMODITAS TEMBAKAU INDONESIA SELAMA PANDEMI COVID-19

<em><span lang="EN-US">The excise contribution from the Tobacco Products Industry (IHT) in 2020 amounted to Rp170.24 trillion or 96.56% of all Indonesian excise revenue. The Covid-19 pandemic caused tobacco exports in 2020 to decrease by 6.41% or 2,134 tons. Based on these conditions, it is necessary to research the competitiveness of tobacco exports during the Covid-19 pandemic in the main destination countries. The method of determining the location used is a purposive method, namely in Belgium, Singapore, Dominican Republic, Sri Lanka, Germany, the Netherlands, and the United States. The data used is time series data for 38 months starting from August 2018 to September 2021. The analysis methods used are IIT (Intra Industry Trade), RCA (Revealed Comparative Advantage), and EPD (Export Product Dynamic). The results showed a) IIT analysis, that most countries experienced a decline during the Covid-19 pandemic. Countries that experienced a decrease were the Netherlands, Dominican Republic, Singapore, and Sri Lanka, while those that experienced an increase were Belgium, Germany, and the United States. b) RCA analysis in the seven main destination countries showed a strong position. c) EPD analysis of most of the main destination countries for tobacco exports showed positive results, except for the United States which experienced a decrease.</span></em>

The Electronic Industry Intra-Industry Trade Analysis in 10 Indonesian Trading Partners

The importance of international trade in the context of refrigerator products makes intra-industry trade intensity (IIT) a very relevant tool. In international trade policymaking, particularly concerning refrigerator products, IIT is essential for understanding global economic dynamics, trade patterns, and trade relations between Indonesia and its trading partners. The use of IIT can provide deep insights into the extent to which there is an exchange of similar or similar but different goods among countries involved in the trade of refrigerator products. Therefore, the focus of the problem in this context is the extent to which the Indonesian refrigerator industry depends on ten trading partners in terms of exports and imports of refrigerator products and how this degree of dependence affects the stability of the sector in the face of changing global trade conditions. Regarding exports, India is the most important trading partner with a significant contribution, indicating a dependency that requires special attention. India has also emerged as an essential supplier, albeit with a lower level of dependence. Diversifying export and import markets should be considered to reduce the risk of dependence on certain trading partners. IIT analysis can also provide insights into the competitiveness of Indonesian products in the international market —improvement of export success also depends on understanding intra-industry trade dynamics.

Mega-Regionalism in Trade from a Sectoral Perspective. The Case of the Automotive Industry in the Regional Comprehensive Economic Partnership

Theoretical background: The Regional Comprehensive Economic Partnership (RCEP) is the largest mega-regional trade agreement ever signed, accounting for more than 30% of the global population, exports, and gross domestic product (GDP). It is also the largest automotive market worldwide, with significant potential both in terms of automotive manufacturing and sales. Purpose of the article: The paper’s main objective is to characterize China-RCEP automotive trade in the years 2012–2021 with reference to key provisions and implications of the aforementioned mega-regional trade agreement for the automotive industry. In the empirical part of the paper, the authors attempt to verify the hypothesis that trade liberalization under RCEP may contribute to the expansion of the regional automotive industry in terms of trade volume, as well as fragmentation of value and supply chains. Research methods: The authors conducted an analysis of intra-industry trade disaggregated into 54 six-digit HS tariff codes using the Grubel–Lloyd and Balassa indexes, accompanied by cross sectional analysis and studies of sectoral reports and literature in the field of mega-regionalism in trade. Main findings: The hypothesis formulated in the introduction of the paper was verified positively –the authors provided an added value to previous empirical studies on RCEP, in the form of a perspective of the automotive industry and in-depth analysis of sectoral trends for the last ten years. The potential for further fragmentation of value and supply chains inside the region was identified, including the possibility of relocation of manufacturing and assembly activities to lower the cost of RCEP Member States to strengthen comparative advantages over extra-regional counterparts (EU, USMCA). The authors pointed at the prospective rising attractiveness of RCEP in automotive manufacturers’ location decisions worldwide, considering both costs, retreat from global-oriented manufacturing and export strategies, investment security, sustainable development, as well as geopolitical trends in respect of newly established tariff and non-tariff barriers.

한국 ICT산업의 대 아세안 질적 무역 경쟁력 연구: 일본과의 비교를 중심으로

Purpose: The purpose of this paper is to analyze changes in the trade competitiveness of the information and communication technology (ICT) industries in Korea and Japan in the ASEAN market through export competitiveness and intra-industry trade analysis.
 Research design, data, and methodology: The Revealed Symmetric Comparative Advantage Index(RSCA) analysis method is used to measure changes in export competitiveness. In addition, intra-industry trade(IIT) is analyzed by dividing it into vertical intra-industry trade(VIIT) and horizontal intra-industry trade(HIIT), and vertical intra-industry trade(VIIT) is analyzed by dividing it into High Quality Vertical Intra-Industry Trade and Low Quality Vertical Intra-Industry.
 Results: As a result of RSCA analysis, it was found that the Korean ICT industry was comparatively inferior in the ASEAN market between 2010 and 2019, and its competitiveness weakened. By item, the competitiveness of communication apparatus was the lowest, followed by information apparatus, broadcasting apparatus, and parts.
 Meanwhile, unlike Korea, Japan’s ICT industry was found to be competitive in comparative advantage. Among them, broadcasting apparatus were found to be the most competitive, followed by parts, information apparatus, and communication apparatus. According to the IIT analysis, Korea and Japan in the ASEAN market between 2010 and 2019. Both countries were found to be actively engaged in intra-industry trade with ASEAN. In the case of Korea, VIIT was found to be more active than HIIT in trade with ASEAN. Among them, VIITL was found to be the most active. In the case of Japan, VIIT was found to be more active than HIIT, and among them, VIITH was found to be the most active. In other words, overall, it was found that the qualitative competitiveness of Korea and Japan in the ASEAN market improved.
 Implications: This study has academic and political implications in that it analyzed the changes in ICT trade competitiveness between Korea and Japan in the ASEAN market. However, there is a limit to the research in that the change in trade competitiveness in terms of imports was not considered.

An Analysis of Intra-Industry Trade with Some Selected European Union Countries in the Turkish Manufacturing Industry

This study aims to analyse intra-industry trade in the manufacturing industry sector with the EU countries, where Turkey has the most trade. The period of the study is 2000-2020. The countries examined are Germany, France, Netherlands, Italy, Spain, Poland, Belgium-Luxembourg, Sweden, Romania, Bulgaria, Greece, the Czech Republic, Portugal, Austria, Ireland, Denmark, and the UK. In the analysis, the Grubel Lloyd index was used, which is one of the widely applied static measurement methods in the literature. The study discusses intra-industry trade of manufacturing industry products according to the 3rd revision of the Standard International Trade Classification. According to the analysis results, when Turkey’s foreign trade is evaluated on a sectoral basis, it has been observed that high intra-industry trade is realized in product groups with low added value. Another result obtained is that intra-industry trade with the UK, Germany, France, Poland, Bulgaria and Romania reached high values. Keywords: Intra-industry Trade, Manufacturing Industry, Grubel Lloyd Index JEL: B17, F0, F5, F11, F14

A Study on the Trade Competitiveness of Korea to ASEAN in IT Industry

Purpose: The purpose of this paper is to analyze the trade structure and competitiveness of Korea’s information technology (IT) industry in comparison to that of ASEAN, particularly in terms of quality. Research design, data, and methodology: Indices such as trade specialization index (TSI), Revealed Comparative Advantage (RCA), and Market Comparative Advantage (MCA) are used. Further, an Intra-industry Trade (IIT) index is used to analyze qualitative changes in horizontal intra-industry trade and Intra-industry trade of high- and low-quality goods. Results: An analysis of export competitiveness through RSCA analysis showed that the Korean IT industry’s competitiveness against ASEAN is strong, and its competitiveness is gradually improving. By classification, broadcasting devices, parts, communication devices, and information devices were found to be highly competitive. In addition, the competitiveness of broadcasting, parts and communication devices in 2018 compared to 2010 has been shown to be more competitive and improved, but information devices have weakened further. According to the IIT analysis, more than 60% of Korea and ASEAN were made up of trade in the industry, and as of 2018, the ASEAN Korean IT industry had improved qualitative competitiveness compared to 2010. As a result of IIT analysis based on trade volume, HIIT has decreased and VIIT has increased, indicating that trade within horizontal industries is shifting from vertical to vertical industries. The analysis of IIT based on the number of items showed that HIIT is increasing and VIIT is decreasing, unlike the analysis of trade volume. However, as VIITL is decreasing and VIITH is increasing, the qualitative competitiveness of ASEAN Korea IT has improved. Implications: This study has academic and political implications, as it analyzes changes in Korea’s IT trade competitiveness. However, it is somewhat limited as factors determining qualitative aspects has not been considered.

Analysis of Intra-Industry Trade in Agri-Food Products Between Bosnia and Herzegovina and the European Union

Abstract Although research of intra-industry trade (IIT) has been intensive in the last several decades, the empirical literature focusing on this phenomenon in the Western Balkans countries remains limited, especially in agricultural sector. Aiming to contribute to the existing literature, the paper analyses patterns and country-specific determinants of IIT in agri-food products between Bosnia and Herzegovina (BiH) and the European Union (EU) during the period of their mutual trade liberalisation (2008-2018). The analysis employs Grubel-Lloyd indices and Greenaway-Hine-Milner methodology for measurement of IIT, and applies an econometric panel data model using a Poisson Pseudo-maximum likelihood approach in order to estimate effects of IIT determinants. The findings suggest that intra-industry agri-food trade of BiH with the EU is of low intensity and mainly of vertical nature, viewed totally and bilaterally. We found significant positive effects of trading countries’ sizes, common border and history on IIT, and negative effects of the geographic distance and differences in agricultural productivity.

Measurement and Analysis of Agricultural Products Trade Level between China and Ukraine

The analysis of intra-industry trade and inter-industry trade in international trade in different regions can fully explain the status of export trade and the advantages and disadvantages of products in different regions. The purpose of this research is to analyze the overall agricultural trade situation between China and Ukraine and the nature of the specific trade. To analyze agricultural import and export trade data between China and Ukraine, the author uses the Grubel-Lloyd index (intra-industry trade index) and the Brulhart index (the marginal inter-industry trade index in a specific period). The Grubel-Lloyd index measures the intra-industry trade of a particular product. The Brulhart index is closely related to that of intra-industry trade, that being the export and import of the same items, but concerns changes in exports and imports between two points in time as opposed to their values at a given point in time. The research is based on data for 2011-2020, which are contained in the UN Comtrade database. The research results show that agricultural trade between China and Ukraine is mutually beneficial. The difference in agricultural resource endowment and agricultural structure directly affects the trade of agricultural products between the two countries. The agricultural products exported from China to Ukraine are mainly unprocessed or primary processed agricultural products. Seafood, meat products, fruits, and vegetables account for a large proportion. The main imports are also primary processed agricultural products such as grains and vegetable oils. The agricultural product trade between the two countries is mainly based on intra-industry trade, and the difference in agricultural technology level is an important factor in determining bilateral agricultural exports.

Analysis of Intra-Industry Trade in Cosmetic Commodities between Indonesia and Nine Trading Partners in The Asian Region in 2004-2018 Period

<p align="justify">This research aims to analyze the level of intra-industry trade and the effect of average country size, average per capita income, difference in per capita income, distance, and average tariff on intra-industry trade of cosmetic commodities between Indonesia and nine trading partners (Singapore, Malaysia, Thailand, Philippines, India, China, Hong Kong, Japan, and South Korea) from 2004-2018. This study uses a Grubel-Llyod Index to determine the level of intra-industry trade and static panel data method to see the effect of independent variables on the level of intra-industry trade. The result shows that the level of intra-industry trade of cosmetic commodities between Indonesia and its trading partners (except India) still tended to be low. The average country size, average per capita income, and average tariff have a positive and significant effect on the level of intra-industry trade. Meanwhile, the difference in per capita income and distance have a negative and significant effect.</p>

India-Malaysia Economic Relations: An Empirical Analysis of Trade Dynamics

Ever since India repositioned its foreign policy outlook post-1991 and sought to expand its trade ties with the countries of Southeast Asia with the enactment of the Look East, now Act East Policy, India has had bourgeoning trade with Malaysia. Malaysia is one of the few countries in the world to have a Free Trade Agreement (FTA) with India. The economies of the two countries share a degree of similitude. Both are a part of the Commonwealth Nations, are middle-income economies, and have grown immensely after their respective liberalization, Malaysia having liberalized its economy in the 1970s, much before India did in early 1990s. Despite several common traits, only a few studies have elaborately researched on the trade relationship between the two countries. Malaysia is one of India's largest trade partner in ASEAN, and the geo-economic importance of Malaysia is immense, as it lies to both sides of the South China Sea, making Malaysia an added facilitator in linking India to ASEAN and East Asia. In this context, the study attempted to look into India-Malaysia trade dynamics from 2001 to 2018. Various indexes were used to analyse competitiveness and complementarity in bilateral trade. The study revealed a continuous increase in trade volume from 2000 onwards; while the composition had changed significantly and tilted towards primary goods over the two-decade period. The Trade Intensity Index (TII) reflected an intense trade relationship between the partners during the period of study. The results of Revealed Comparative Advantage (RCA) showed the existence of various non-overlapping advantageous sectors wherein both countries could gain through export. An analysis of Intra-Industry Trade (IIT) elucidated the existence of high IIT, particularly in manufactured goods. The rise in the Complementarity Index with each other exhibited that the countries had a considerable potential to diversify trade. Prospects for enhancing economic cooperation between India and Malaysia were found in the study.

Comparative Intra-industry Trade Analysis on the Asymmetric Effects of the FTA: Korea and MENA Countries

Intra-industry-trade (IIT) demonstrates the degrees of integration of an economy with the world and the status of that economy within the global value chain. This paper compared the IIT data of Korea and selected MENA countries. The Grubel and Lloyd index was calculated using the COMTRADE data during the period of 1995-2015 to compare the dynamics of IIT flows under each free trade agreement (FTA) regime. IIT flows did not show much change in patterns in the case of Algeria and Saudi- Arabia. In particular, it was found that the FTA of Algeria with the EU did not affect the trade structure. The comparative advantage of Algeria and Saudi-Arabia remains in their primary commodities reflecting a narrow industrial base. But the IIT flows of Turkey exhibited that Turkey had been integrating into the global value chain system after its FTA with the EU. These results are in accordance with the findings of Bülhart(2008) indicating that the positive association between IIT and income is not universal. As for Korea, its IIT flows shows that the Korea economy has become deeply integrated with the EU and the USA following its FTA. Overall, the IIT flows have been advancing to a high level of trade structure.

Competitiveness and the Factors Affecting Export of the Indonesia Canned Pineapple in the World and the Destination Countries

Indonesia has a comparative advantage as the largest pineapple exporter in the world. Most of the pineapples are exported in the form of canned pineapples. This study examines the competitiveness of Indonesian exports of canned pineapple in the world and in the destination countries by using the method of Revealed Competitive Advantage (RCA), Export Product Dynamics (EPD), Intra-Industry Trade (IIT), and a panel data regression analysis approach through E-views 6 for the period 2004 until 2013. RCA analysis results indicate that the Indonesian canned pineapple has a comparative advantage in the world as well as in the export destination countries. EPD analysis results indicate that the Indonesian canned pineapple has a highly competitive advantage by positioning a rising star in the world and in the seven export destination countries, including the United States, Spain, Italy, Canada, Denmark, Austria, and China. IIT analysis results indicate that Indonesia has a one-way trade flows and a lower degree of integration towards export destination countries. Finally, the results of panel data analysis indicate that Factors that affect the export volume of Indonesia canned pineapple in the destination countries are Indonesia canned pineapple export prices to the export destination countries, real GDP and the population of destination countries Keywords: Competitiveness, RCA, EPD, IIT, Panel Regression

The Intensity of the Food Processing Industry Products Trade between IndonesiaChina

Economic globalization is characterized by the depletion of the geographic boundaries of a country's economic activity has prompted increasing economic interdependence. International trade is one of the important aspects in the economy of a country. The type of data in this research is secondary data and the form of time series in the 2005-2013 year periodicity, which can be obtained from literature Bank Indonesia, Statistics Indonesia Trade Processing several editions in particular classes of food processing industry, Indonesian export data published by BPS, some edition. This analysis will be applied to the exports of processing trade imports, especially food processing industry group based on the International Standard Industrial Classification (ISIC), and wherein the 3-digit level . The analysis consists of: (1) Analysis of Intra-Industry Trade; (2) Analysis of Error Correction Model (Error Correction Model/ECM ) . The intensity of intra - industry trade between Indonesian food processing with China in 2005-2013 we got the result that the total units of study, in this case Indonesia and China are seven units of study are categorized commodity remaining intra-industry trade is a commodity category inter - industry trade. ECM short-term in research, in general or simultaneous independent variables significantly affect intra-industry trade as the long-term ECM estimation results in research that has no relation to the movement of intra-industry trade between Indonesia and China. Thus, it is less precise when it is applied in Indonesia.

The impact of china’s incursion into the north american free trade agreement (NAFTA) on intra-industry trade

China has become a major player in world trade. Although it has not signed any trade agreements with the countries of the North American Free Trade Agreement (NAFTA), China has been gaining ground as a supplier of goods, making vigorous inroads into this area. One of the dominant trends in economic integration has been the development of intra-industry trade, which has flourished in the nafta signatory countries. This paper focuses on the analysis of intra-industry trade in the context of this free trade area, where the production structure of the countries involved has changed significantly since trade liberalization, revealing the internationalization of production chains. Lastly, changes in the trade structure induced by the growing presence of China in the nafta region are captured. Trade within this area works like a radiated wheel, with the United States acting as the axis, while China, Canada and Mexico operate as the spokes.

Analysis of intra-industry trade between Turkey and selected transition economies at the bilateral trade

Bu metin, secilmis Gecis Ekonomileri (Arnavutluk, Azerbaycan, Beyaz Rusya, Bosna-Hersek, Hirvatistan, Gurcistan, Kazakistan, Kirgizistan, Makedonya, Moldova, Rusya, Tacikistan, Turkmenistan, Ukrayna, Ozbekistan) ile Turkiye arasinda ikili ticaret bazinda endustri-ici ticaretin duzeyini 1995-2012 donemi icin analiz etmektedir. Calismada, UNCTAD verileri kullanilmakta ve SITC 1 kategorisi icin Grubel-Lloyd Endeksi ve Loertscher-Wolter Endeksi hesaplanmaktadir. Elde edilen bulgulara gore, analize konu olan donemde Turkiye’nin secilmis Gecis Ekonomileri ile ikili ticaretinde genel itibariyle “Baska yerde belirtilmeyen kimya sanayi ve buna bagli sanayi urunleri”, “Baslica siniflara ayrilan islenmis mallar”, “Canli hayvanlar ve gida maddeleri” ve “Mineral yakitlar, yaglar vb. damitilmasindan elde edilen urunler” urun gruplarinda endustri-ici ticarete daha sik rastlanmaktadir. Diger taraftan, “Sular, alkollu ickiler, tutun ve mamulleri”, “Hayvansal, bitkisel kati ve sivi yaglar, mumlar” ve “Cesitli mamul esya” urun gruplarinda endustri-ici ticarete daha ender rastlanmaktadir.

Export Marketing Strategy through the Analysis of Intra-Industry Trade in Gwangju Region

Export Marketing Strategy through the Analysis of Intra-Industry Trade in Gwangju Region

The Analysis of Intra-Industry Trade in Auto Parts Industry in Jiin Province

In recent years, the import and export scale of auto parts industry grows increasingly in Jilin Province. According to the index of intra-industry trade of auto parts, the intra-industry trade level of the Jilin Province’s auto parts is relatively lowly, there are a great of room for development. In order to enhance the level of intra-industry trade, the enterprises should promote the upgrading of the processing trade, improve the quality of imports, take the independent brand and intellectual property rights as the key, to enhance the export competitiveness. The auto parts enterprises must shift gradually to the plurality of supporting activities from the original single production activities.

Intra-Industry Trade Analysis of U.S. State–Canadian Province Pairs

Intra-industry trade (IIT) occurs when trading partners import and export similar products. A high volume of IIT of horizontally differentiated goods implies a deep level of regional integration, stable regional trading patterns, and potentially significant consequences from border delay. In this paper, trade between Washington State and British Columbia, Canada (the Cascade gateway), is compared with trade between Michigan State and Ontario, Canada (the Great Lakes gateway). The Grubel–Lloyd index, which measures IIT, is used to analyze trade in these two corridors. Higher levels of IIT and regional integration within the Great Lakes gateway are shown. The paper argues that cross-border supply chains most exposed to higher cost from increasing border delays are composed of horizontally differentiated manufactured goods having high levels of IIT and relying heavily on truck transportation. These types of goods are more common in the Great Lakes gateway, and this region may therefore experience greater economic impacts from long and unpredictable delays than the Cascade gateway.

Treating trade statistics inaccuracies: the case of intra-industry trade

We investigate the accuracy of trade statistics employing intra-industry trade analysis for 29 countries. We exploit the fact that country A's exports to country B are country B's imports from country A. The data published by the two sides can be compared with each other. Are A's or B's data more accurate? Our analysis is based on the average degree of ‘similarity’ between country A's and country B's data and the ‘mirror’ data of all the other countries in the sample. The ranking of the countries by the accuracy of their data yielded by our calculations mainly confirm our a priori expectations. We also investigate whether the data of ‘good’ reporting countries can be more trusted than some averages of the latter and the data reported by the ‘bad’ reporters.