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Intra-Industry Trade in Manufactures Between Thailand and Other Asia Pacific Economic Cooperation (APEC), Countries

Author

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  • Chemsripong, S.
  • Lee, J.E.
  • Agbola, F.W.

Abstract

This paper empirically investigates the determinants of intra-industry trade in manufactures between Thailand and other APEC countries. A 3-digit Standard International Trade Classification (SITC) data for the period 1980-1999 is employed in the analyses. Tests of various hypotheses of the determinants of intra-industry trade are developed and performed. Results indicate that, in the pre-APEC era, intra-industry trade was negatively associated with disparity in economic development and transport and information costs between trading partners, but positively related with similarity in sophistication of the economies, capital intensity, culture and the level of openness of the economy. In the post APEC era, intra-industry trade increased with economic size, but the effect was weaker. Disparities in economic development become less important in influencing Thailand’s intra-industry trade in manufactures. By adjusting for trade imbalance, the results reveal that Thailand’s entry into APEC has stimulated growth in intra-industry trade in manufactures.

Suggested Citation

  • Chemsripong, S. & Lee, J.E. & Agbola, F.W., 2005. "Intra-Industry Trade in Manufactures Between Thailand and Other Asia Pacific Economic Cooperation (APEC), Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(4).
    • Handle: RePEc:eaa:aeinde:v:5:y:2005:i:4_4
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    References listed on IDEAS

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    Cited by:

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    2. Thorpe Michael William & Leitão Nuno Carlos, 2013. "Determinants of United States’ Vertical and Horizontal Intra-Industry Trade," Global Economy Journal, De Gruyter, vol. 13(2), pages 233-250, June.
    3. Nuno Carlos LEITÃO & Marius-Razvan SURUGIU & Camelia SURUGIU, 2014. "Romanian intra-industry trade: a panel data approach," EuroEconomica, Danubius University of Galati, issue 2(33), pages 7-18, November.
    4. Muhammad Shahbaz & Nuno Carlos Leit o & Muhammad Sabihuddin Butt, 2012. "Pakistan Intra-Industry Trade: A Panel Data Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 2(2), pages 225-232.
    5. Nuno Carlos Leitão & Horácio C. Faustino & Yushi Yoshida, 2010. "Fragmentation, Vertical Intra-Industry Trade, and Automobile components," Economics Bulletin, AccessEcon, vol. 30(2), pages 1006-1015.
    6. Leitão, Nuno Carlos, 2012. "Globalization and United States’ Intra-Industry Trade," MPRA Paper 39756, University Library of Munich, Germany.

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