Pattern Of Intra-industry Trade Research Articles

EU, 미국, 중국시장에서 한국 신재생에너지 산업의 품목별 수출 품질경쟁력과 시장점유율 변화 요인 분석

This study applied product and market segment analysis (PMSA) and intra-industry trade (IIT) indices to capture the quality and price competitiveness and high- and low-quality IIT of new renewable energy (NRE) items in Korea’s trade with major economic powers (i.e., European Union [EU], United States, and China) for the period 2012-2022. Additionally, this study used the constant market share (CMS) technique to divide the causes of fluctuations in Korea's market share in large economies’ import markets into demand side, supply side, and adaptation side. The empirical results can be summarized in the following three points. First, PMSA of quality and price competitiveness confirmed Korea’s weakness in securing price and quality competitiveness in trade with the EU and the United States and Korea’s inability to secure price competitiveness in trade with China. Additionally, analysis of high- and low quality IIT showed that in trade with the EU, low-quality vertical IIT and horizontal IIT were mixed, whereas in trade with the United States and China, the majority of items showed low-quality vertical IIT and high-quality vertical IIT patterns, respectively. More importantly, the CMS results by item in the NRE industry based on the 2017/2022 period showed that in the EU and US import markets, supply factors caused most of the market share changes for the majority of items, and in the Chinese import market, the main causes were a mixture of supply and demand factors. In conclusion, policy and institutional support for research and development of independent and convergence technologies are needed to strengthen the NRE industry’s quality competitiveness, and market expansion of the NRE industry can be accomplished by expanding direct investment in the United States and the EU, as well as through government financial support.

Does Difference in Environmental Standard Influence India’s Bilateral IIT Flows? Evidence from GMM Results

In the recent past, India has entered into several regional trading agreements (RTAs) with the objective of export promotion, on the one hand, and deepening participation in the global value chains, on the other. The consequent rise in Indian exports had been accompanied by a simultaneous import growth, given the trade preferences for partners through RTAs as well as ongoing unilateral tariff reforms. The rise in simultaneous exports and imports has enhanced the country’s intra-industry trade (IIT) level. Recently, India has engaged in RTA negotiations with several developed countries, which are characterized by more stringent environmental standards. The current analysis attempts to identify factors that influence India’s bilateral aggregate IIT index in a dynamic panel framework. In particular, it attempts to assess whether greater divergence in environmental standards adversely influence India’s IIT patterns. The empirical estimates reveal that India’s IIT is found to be relatively higher with countries that are technologically more advanced and have relatively stringent environmental standards. The observation indicates that India is possibly specializing in relatively low technology-intensive products vis-à-vis its developed trade partners. The analysis concludes that India would be better off by facilitating innovation and adhering to a higher level of environmental standard. JEL Codes: F13, F14, F15, F18

Environmental Regulation and Intra-Industry Trade: An Empirical Analysis

ABSTRACT This article examines the impact of environmental stringency on the pattern of intra-industry trade (IIT) flows of four pollution-intensive industries, that is, pulp and waste paper, lime, cement, and construction materials, iron ore and concentrates, and dyeing and tanning extracts, by utilizing a balanced panel dataset comprising of 36 countries over the period 1990 to 2019. The environmental stringency variable has been estimated from the energy intensity of the trading countries. The results show that the environmental stringency coefficients are highly statistically significant, implying that environmental regulation emerges as an essential indicator of the IIT flows between two trading countries.

Determinants of Intra-Industry Trade: An Investigation with Bma for the European Union

The empirical literature on determinants of intra-industry trade (IIT) is vast and comprehensive, yet as the authors failed to properly account for model uncertainty it has brought inconsistent and conflicting results. To resolve this issue, Bayesian model averaging was applied to investigate the robustness of 48 potential determinants of bilateral IIT for the panel of 26 European Union countries over the 1999-2011 period. Application of BMA demonstrated that 11 of them are robust determinants of IIT, namely real GDP product, trade openness, membership in the European Union and the Euro area, corruption, and differences in factor abundance. Among the factors of production, the key role in the determination of IIT patterns can be assigned to the differences in human capital. Yet, transportation cost and cultural similarity have no impact on the IIT patterns.

DETERMINANTS OF INTRA-INDUSTRY TRADE: AN INVESTIGATION WITH BMA FOR THE EUROPEAN UNION

The empirical literature on the determinants of intra-industry trade (IIT) is vast and comprehensive, yet as authors failed to properly account for model uncertainty it has brought inconsistent and conflicting results. To resolve this issue, Bayesian model averaging was applied to investigate the robustness of 48 potential determinants of bilateral IIT for the panel of 26 European Union countries over the 1999-2011 period. Application of BMA demonstrated that 11 of them are robust determinants of IIT, namely real GDP products, trade openness, membership in the European Union and the Euro area, corruption, and differences in factor abundance. Among the factors of production, the key role in the determination of IIT patterns can be assigned to the differences in human capital. Yet, transportation cost and cultural similarity have no impact on the IIT patterns.

The Effects of Industry-Specific FDI on Intra-Industry Trade Patterns

The Effects of Industry-Specific FDI on Intra-Industry Trade Patterns

U.S. Vertical and Horizontal Intra-Industry Trade Patterns with the Middle East

The main objective of this paper is to examine the extent of the U.S. vertical and horizontal intra-industry trade patterns with the countries in the Middle Eastern region. To deepen our understanding of the development of trade and investment relations between the U.S. and the Middle Eastern countries, we consider both the commodity structure of trade as well as the structure of investment. Based on the hypothesis that intra-industry trade is closely related to offshore production by multinational enterprises, then a model have been develop to capture the main determinants of vertical and horizontal intra-industry trade that explicitly includes the role of the U.S. foreign investment in the region. The model is tested empirically using detailed trade and investment data. The findings of the study indicated that foreign investment plays a significant role in the increase in intra-industry trade in recent years.

U.S. Vertical and Horizontal Intra-Industry Trade Patterns with the Middle East

The main objective of this paper is to examine the extent of the U.S. vertical and horizontal intra-industry trade patterns with the countries in the Middle Eastern region. To deepen our understanding of the development of trade and investment relations between the U.S. and the Middle Eastern countries, we consider both the commodity structure of trade as well as the structure of investment. Based on the hypothesis that intra-industry trade is closely related to offshore production by multinational enterprises, then a model have been develop to capture the main determinants of vertical and horizontal intra-industry trade that explicitly includes the role of the U.S. foreign investment in the region. The model is tested empirically using detailed trade and investment data. The findings of the study indicated that foreign investment plays a significant role in the increase in intra-industry trade in recent years.

Strategic Trade: Weighted Payoff Functions And Diverse Trade Patterns

This paper extends the basic intra-industry trade model, Brander and Spencer (1985), in two directions. A weight is included in the foreign governments payoff function, similar to Collie (1997), which alters the traditional policy choice when this weight is different than one. We also require each firms output choice be nonnegative. These constraints and the weighted payoff function lead to several Nash equilibria that have not been analyzed in the intra-industry trade literature. Our analysis helps explain why industries satisfying the necessary conditions for intra-industry trade patterns may not actually display such trade patterns. [F12, F13, C72]

Strategic Trade: Weighted Payoff Functions And Diverse Trade Patterns

This paper extends the basic intra-industry trade model, Brander and Spencer (1985), in two directions. A weight is included in the foreign governments payoff function, similar to Collie (1997), which alters the traditional policy choice when this weight is different than one. We also require each firms output choice be nonnegative. These constraints and the weighted payoff function lead to several Nash equilibria that have not been analyzed in the intra-industry trade literature. Our analysis helps explain why industries satisfying the necessary conditions for intra-industry trade patterns may not actually display such trade patterns. [F12, F13, C72]

An Analysis Of The Determinants Of Intra-Industry Trade: The Case Of Spanish Foreign Trade

This paper analyzes the patterns of intra-industry trade observed in Spanish foreign trade and assesses the merits of alternative hypotheses in explaining the determinants of such trade. The results of the econometric analysis support the predictions of the theoretical models. These results show that Spanish intra-industry trade is positively correlated with per capita income, the size of the economies, the existence of a common border and EU membership, while it is negatively correlated with distance and differences in per capita income.

INTRA-INDUSTRY TRADE AND EXPORT SPECIALIZATION: LITHUANIAN CASE

This paper investigates the extent of intra-industry trade between Lithuania and the European Union and its role in export specialization. Lithuanian integration into the EU had an influence on the changes of intra-industry trade and export structure. The paper analyses the basic methods of intra-industry trade and export specialization measurement; the pattern of intra-industry trade between Lithuania and the EU, the influence of this form of trade on the changes of export structure. For measurement of Lithuanian intra-industry trade in the paper two approaches are adopted. The Grubel-Lloy index is used to calculate the intensity of intra-industry trade and thus to determine its relative importance compared to inter-industry trade. Secondly, the changes in trade over time are examined using an index of marginal intra-industry trade. Using these methods of measurement and Combined Nomenclature of commodities (CN) are calculated that Lithuania export specialization is based on similar goods with relatively different quality. It was determined that Lithuania has advantages in such CN groups as milk, fish products and other products. The EU has advantages in trade of product fruit, vegetables, coffee and other products.

An Account of Global Intra-Industry Trade, 1962-2006

This paper provides a comprehensive description of intra-industry trade patterns and trends, using data on more than 39 million bilateral trade flows. In 2006, 27 percent of global trade was intra-industry if measured at the finest (5-digit) level of statistical aggregation, and 44 percent if measured at a coarser (3-digit) level of statistical aggregation. The observed steady growth in global intra-industry trade since the early 1960s suggests a process of world-wide structural convergence: economies are becoming more similar over time in terms of their sectoral compositions. In particular since the 1990s, this trend appears to be driven to a significant extent by the international fragmentation of vertical production chains. Intra-industry trade is a high-income and middle-income country phenomenon: African trade remains overwhelmingly of the inter-industry type. Moreover, the observed increase in intra-industry trade was not accompanied by a comparable increase in marginal intra-industry trade, suggesting that trade-induced adjustment pressures remain potentially important.

Vertical intra-industry trade and foreign direct investment in East Asia

As economic integration in East Asia progresses, trade patterns within the region are displaying an ever-greater complexity: Though inter-industry trade still accounts for the majority, its share in overall trade is declining. Instead, intra-industry trade (IIT), which can be further divided into horizontal IIT (HIIT) and vertical IIT (VIIT), is growing in importance. In this paper, we set out to measure and examine vertical intra-industry trade patterns in the East Asian region and compare these with the results of previous studies focusing on the EU, to which such analyses so far have been confined. Based on the supposition that VIIT is closely related to offshore production by multinational enterprises, we then develop a model to capture the main determinants of VIIT that explicitly includes the role of FDI. The model is tested empirically using data from the electrical machinery industry. The findings support our hypothesis, showing that FDI plays a significant role in the rapid increase in VIIT in East Asia seen in recent years. J. Japanese Int. Economies 17 (4) (2003) 468–506.

An Empirical Analysis of Intra-Industry Trade in Swedish Machinery Industry

This paper analyses the intra-industry trade and intra-industry division of labour in Swedish machinery industry trade with 25 countries. Intra-industry division of labour arises from trade of intermediate goods. We measure the degree of intra-industry division, and the ratio of intra-industry division to intra-industry trade. Using these indices, we analyse regional and sectoral pattern of intra-industry trade and division.Grubel-Lloyd index shows that intra-industry division of labour is an important factor of intra-industry trade. The analysis within the framework of the gravity model of trade shows that intra-industry trade and division of labour is positively related to the size of country, negatively related to the distance between two country and dissimilarity of income. In Swedish case, GL index of intra-industry division is higher with the European countries than with the non-European countries, and higher with developed countries than with developing countries.In addition, the results of GL index and regression reveal the difference in industrial sectors. The intra-industry trade and division of metal working machinery sector, which tends to regionally concentrate, is higher with countries in the same region than other industrial sectors.

International Trade and Commercial Policy for Durable Goods

Many commodities traded internationally are durable in nature. A dynamic durable goods oligopoly trade model is analyzed. The analysis indicates that the pattern of intraindustry trade depends fundamentally on the quality or durability of the firms’ output. Indeed, product durability influences the effectiveness of commercial policy. For example, as domestic product durability rises, an increase in domestic tariffs has a smaller impact on domestic production. In addition, the model uncovers a previously unrecognized avenue by which product quality standards act as a barrier to trade. The results may help explain some of the empirical anomalies found in the literature.

Patterns of intra-industry trade and foreign direct investment in agrofood products: implications for East-West integration

implications for East-West integration Siemen van Berkum Agricultural Economics Research Institute (LEI), The Hague, The Netherlands In MOCT-MOST 9:255-271,1999, Kluwer Academic Publishers, Netherlands Abstract Agricultural relations between the EU and CEECs have changed substantially since the reforms of the economic and political system in the CEECs started around 1989/1990. Trade between the two regions has grown significantly and is increasingly of an intra-industry nature, indicating that noncomparative advantage factors, like economies of scale, product differentiation and innovations, are gaining importance as drivers of trade. Trade patterns suggest that the relationship between agriculture in East and West is increasingly complementary. The inflow of FDI from West-European firms to the food sector in the CEEC region enforces this process of complementarity. Both patterns of trade and FDI indicate that big shifts in specialisation and competitiveness among West and East European farmers due to the eastward enlargement of the Union are unlikely to occur.

Intra-industry trade in the European computers industry

Intra-Industry Trade in the European Computers Industry. —This paper analyzes the pattern of intra-industry trade in the European computers industry. Hypotheses regarding both country-specific and industry-specific factors are tested. Those include proxies for level of economic development, market size, market proximity, scale economies and market concentration. The problem of categorical aggregation is explicitly addressed and a method to overcome is suggested. The results of the econometric analysis corroborate the predictions of the theoretical models and their ability to identify at least some of the crucial factors driving to international specialization.

Intra-industry trade: A note on new evidence from Australia, 1968–1982

T he simultaneous occurrence of export and import within the same industry, known as intra-industry trade (IIT), has received increasing attention in recent trade literature. Since the well-known Heckscher-Ohlin-Samuelson model does not provide a satisfactory explanation for this phenomenon, the observation of twoway trade flows of similar products has become a new challenge to the traditional trade theories. The growing body of theoretical and empirical literature concerning the concept of IIT has recognized that the study of the prevalence of such trade is important in two respects. First, the accurate quantification of pure IIT can provide a reliable indication of its relative significance in explaining international exchange by comparison with the relative factor proportions explanation. Secondly, the changing pattern of IIT has direct policy relevance in the sense that adjustment costs and restructuring problems will become minor if trade expansion takes the form of IIT rather than inter-industry trade [Caves, 1981; Greenaway, Milner, 1987]. The present study is motivated by the recent remarks of the Organisation for Economic Co-operation and Development (OECD) on the performance of the manufacturing sector in the Australian economy [OECD, 1987]. The OECD Survey Report on Australia points out that the manufacturing sector has stagnated and its contribution to total exports has been insufficient to give the sector a prominent position in foreign trade. One of the main reasons offered by the OECD for this perhaps undesirable outcome is the relatively little

A cross section analysis of intra-industry trade in the U.K.

In this paper the inter-industry patterns of intra-industry trade in the United Kingdom are explored. A cross-section econometric model is explained and estimated for the year 1977. Two samples of 37 and 68 observations are tested using a variety of proxies for features of market structure including market concentration, product differentiation and cost conditions. The results suggest that a significant proportion of the inter-industry variation in intra-industry trade can be explained by the model.