IDEAS home Printed from https://ideas.repec.org/a/jda/journl/vol.39year2005issue1pp1-13.html
   My bibliography  Save this article

Vertical specialization-based production and intraindustry trade

Author

Listed:
  • Don P. Clark

    (University of Tennessee-Knoxville, USA)

Abstract

This paper investigates industry and country-level determinants of intraindustry trade (IIT) between the United States and seventy-two trading partners. Its primary focus is on the relationship between vertical specialization-based production and IIT. Industries engaged in vertical specialization across national boundaries are identified through their use of Offshore Assembly Provisions (OAPs) in the U.S. tariff code. OAPs encourage firms to transfer one or more production stages abroad, export components for assembly, and subsequently import more advanced stages of the product. Three indicators of vertical specialization-based production are found to exert significant positive influences on IIT. Industries that engage in this pattern of production contribute to IIT because resulting two-way trade flows often fall under the same industry classification. Other findings support predictions of modern trade theories.

Suggested Citation

  • Don P. Clark, 2005. "Vertical specialization-based production and intraindustry trade," Journal of Developing Areas, Tennessee State University, College of Business, vol. 39(1), pages 1-13, September.
    • Handle: RePEc:jda:journl:vol.39:year:2005:issue1:pp:1-13
    as

    Download full text from publisher

    File URL: http://muse.jhu.edu/journals/jda/summary/v039/39.1clark.html
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Bin & Wang, Dedong & Xu, Youquan & Liu, Chunlu & Luther, Mark, 2018. "Vertical specialisation measurement of energy embodied in international trade of the construction industry," Energy, Elsevier, vol. 165(PB), pages 689-700.
    2. Fithra Faisal Hastiadi, 2012. "The Determinants of China-Japan-Koreas Vertical Intra Industry Trade to ASEAN4 countries," Working Papers in Economics and Business 201205, Faculty of Economics and Business, University of Indonesia, revised May 2012.

    More about this item

    Keywords

    intraindustry trade; vertical production linkages; outsourcing.;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • F10 - International Economics - - Trade - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jda:journl:vol.39:year:2005:issue1:pp:1-13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Abu N.M. Wahid (email available below). General contact details of provider: https://edirc.repec.org/data/cbtnsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.