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This paper investigates the levels and trends of intra-industry trade (IIT) in Korea, and empirically tests IIT model by using Korea's bilateral trade in the manufacturing industry.
The Grubel-Lloyd index is used to measure the IIT level and price data are used to distinguish between horizontal and vertical IIT, where products are differentiated by attributes and by quality respectively. This paper focuses on the test of industry characteristics which is different from the author's previous one where country characteristics was intensively focused and tested.
The data confirms that competitive market structure generates horizontal intra-industry trade; that is, a higher economy of scale permits smaller entry. IT Korea is looking for greater diversity in its export and hopes to become more competitive in the world market, the growth of small and medium-sized firms should be promoted. Also it is found that vertical IIT and foreign direct investment(FDI) are substitutes rather than complements in the case of Korea. Given the importance of IIT in Korea's bilateral trade, Korea needs to adopt domestic policies that can actively promote IIT. Finally, special trade agreements are needed with countries that have high potential for IIT as well.
The Grubel-Lloyd index is used to measure the IIT level and price data are used to distinguish between horizontal and vertical IIT, where products are differentiated by attributes and by quality respectively. This paper focuses on the test of industry characteristics which is different from the author's previous one where country characteristics was intensively focused and tested.
The data confirms that competitive market structure generates horizontal intra-industry trade; that is, a higher economy of scale permits smaller entry. IT Korea is looking for greater diversity in its export and hopes to become more competitive in the world market, the growth of small and medium-sized firms should be promoted. Also it is found that vertical IIT and foreign direct investment(FDI) are substitutes rather than complements in the case of Korea. Given the importance of IIT in Korea's bilateral trade, Korea needs to adopt domestic policies that can actively promote IIT. Finally, special trade agreements are needed with countries that have high potential for IIT as well.
목차
Abstract
Ⅰ. Introduction
Ⅱ. Definition and Measurement of Intra-industry Trade (IIT)
Ⅲ. Korea‘s IIT across Industries
Ⅳ. Empirical Evidence and the Testing of Hypotheses
Ⅴ. Empirical Tests
Ⅵ. Conclusion
Bibliography
참고문헌 (31)
참고문헌 신청
[학술지(정기간행물)] - / 1966 / Tariff Reductions and Trade in Manufactures among the Industrial Countries : 46 ~ 673
[학술지(정기간행물)] - / 1987 / Intra-industry Specialization in a Multi-country and Multi-industry Framework : 923 ~ 39
[학술지(정기간행물)] - / 1983 / Measurement and Determinants of Intra-industry International Trade edited by P
[학술지(정기간행물)] - / 2002 / Vertical and Horizontal Intra Industry Trade in Some Asian and Latin American Less Developed Countries 17 (2) : 273 ~ 296
[학술지(정기간행물)] - / 2002 / A Cross-Country Analysis of Horizontal and Vertical Intra-Industry Trade of Korea. 3 (2) : 269 ~ 305
[학술지(정기간행물)] - / 1987 / Intra-industry Specialization in a Multi-country and Multi-industry Framework : 923 ~ 39
[학술지(정기간행물)] - / 1983 / Measurement and Determinants of Intra-industry International Trade edited by P
[학술지(정기간행물)] - / 2002 / Vertical and Horizontal Intra Industry Trade in Some Asian and Latin American Less Developed Countries 17 (2) : 273 ~ 296
[학술지(정기간행물)] - / 2002 / A Cross-Country Analysis of Horizontal and Vertical Intra-Industry Trade of Korea. 3 (2) : 269 ~ 305
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UCI(KEPA) : I410-ECN-0101-2010-326-002832520