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Intra-industry trade, fragmentation and export margins: An empirical examination of sub-regional international trade

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  • Yoshida, Yushi

Abstract

This study contributes to the existing empirical investigation of international trade by providing new evidence of intra-industry trade using sub-regions within a nation. We calculate the Grubel–Lloyd intra-industry trade index for 41 Japanese regions with Korea during the period from 1988 to 2006. In sub-regional intra-industry trade regression models, we introduce extensive and intensive margins of prefecture exports as new explanatory variables. We find that a rise in sub-regional intra-industry trade is driven by the introduction of a new variety of exports, while intra-industry trade is discouraged by an increase in the trade value of products that are already exported.

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  • Yoshida, Yushi, 2013. "Intra-industry trade, fragmentation and export margins: An empirical examination of sub-regional international trade," The North American Journal of Economics and Finance, Elsevier, vol. 24(C), pages 125-138.
  • Handle: RePEc:eee:ecofin:v:24:y:2013:i:c:p:125-138
    DOI: 10.1016/j.najef.2012.07.003
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    Cited by:

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    2. Zhang, Wei & Yang, Jun & Sheng, Pengfei & Li, Xuesong & Wang, Xingwu, 2014. "Potential cooperation in renewable energy between China and the United States of America," Energy Policy, Elsevier, vol. 75(C), pages 403-409.
    3. Kunitomo, Naoto & Sato, Seisho, 2013. "Separating Information Maximum Likelihood estimation of the integrated volatility and covariance with micro-market noise," The North American Journal of Economics and Finance, Elsevier, vol. 26(C), pages 282-309.
    4. Yushi Yoshida & Nuno Carlos Leitão & Horácio Faustino, 2008. "Intra-Industry Trade between Japan and European Countries: a Closer Look at the Quality Gap in VIIT," Working Papers Department of Economics 2008/53, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    5. Phan, Thanh Hoan & Jeong, Ji Young, 2012. "An Analysis of Korea-Vietnam Bilateral Trade Relation," MPRA Paper 48312, University Library of Munich, Germany.
    6. Fan Zhang & Jianmu Ye & Chao Zhang & Zhuang Xiong, 2019. "Evolutionary mechanism for subregional cooperation: Evidence from provincial subregion in Central China," Progress in Development Studies, , vol. 19(4), pages 304-326, October.
    7. Seyed-Rohollah Ahmadi, 2016. "The Impact of Sanction on Bilateral Intra-Industry Trade between Iran and SCO Countries," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 20(3), pages 277-293, Summer.
    8. Aggarwal, Sakshi, 2023. "Intra-industry trade: Revisiting theory and Literature Survey," MPRA Paper 117182, University Library of Munich, Germany.
    9. Xia, X.H. & Hu, Y. & Chen, G.Q. & Alsaedi, A. & Hayat, T. & Wu, X.D., 2015. "Vertical specialization, global trade and energy consumption for an urban economy: A value added export perspective for Beijing," Ecological Modelling, Elsevier, vol. 318(C), pages 49-58.
    10. Sakshi Aggarwal & Debashis Chakraborty & Nilanjan Banik, 2023. "Does Difference in Environmental Standard Influence India’s Bilateral IIT Flows? Evidence from GMM Results," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 22(1), pages 7-30, March.
    11. Hamid Beladi & Avik Chakrabarti & Sugata Marjit, 2016. "Competitive General Equilibrium with Finite Change and Theory of Policy Making," Economics and Politics, Wiley Blackwell, vol. 28(1), pages 1-7, March.
    12. Sakshi Aggarwal & Debashis Chakraborty, 2021. "Which Factors influence Vertical Intra-Industry Trade in India? Empirical Results from Panel Data Analysis," Working Papers 2154, Indian Institute of Foreign Trade.

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    More about this item

    Keywords

    Export variety; Fragmentation; Intra-industry trade; Regional trade; Vertical specialization;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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