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Intra Industry Trade and Product Quality: China and Eight Developing Countries

Author

Listed:
  • Mastooreh Eshraghi

    (School of Graduate Studies, University Putra Malaysia, Malaysia)

  • Normaz Wana Ismail

    (Faculty of Economics and Management, University Putra Malaysia, Malaysia)

Abstract

This study aims to measure the export product quality improvement for trade between China and eight selected developing countries: Argentina, Brazil, Chile, Egypt, South Africa, Mexico, Turkey, and the Russian Federation based on disaggregated four-digit SITC data for the two periods 2000-2004 and 2004-2008. Vertical intra-industry trade high (VIITH) is considered as high quality products. The results revealed that the highest benefits of intra-industry trade with China are for South Africa in the first period and for Egypt in the second period. The highest positive growth of high quality products during the two periods is reported for Russia in the first period and for Brazil and Argentina in the second period. In conclusion, there is a massive potential for economic cooperation between China and these three partners.

Suggested Citation

  • Mastooreh Eshraghi & Normaz Wana Ismail, 2013. "Intra Industry Trade and Product Quality: China and Eight Developing Countries," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 12(1), pages 59-72, June.
    • Handle: RePEc:ijb:journl:v:12:y:2013:i:1:p:59-72
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    References listed on IDEAS

    as
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    Cited by:

    1. Jin Sun, 2021. "Do Higher‐Quality Regional Trade Agreements Improve the Quality of Export Products from China to “One‐Belt One‐Road” Countries?," Asian Economic Journal, East Asian Economic Association, vol. 35(2), pages 142-165, June.

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    More about this item

    Keywords

    intra industry trade; product quality value; China;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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