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Trade Cooperation Between China and Vietnam from the Perspective of Intra-Industry Trade

In: Sustainable Development in Asia

Author

Listed:
  • Yan Tan

    (School of Business, Yulin Normal University)

  • Yang Yang

    (College of ASEAN Studies, Guangxi University for Nationalities)

Abstract

Exchange rate pass-through (ERPT) indicates the impacts of an effective exchange rate change on the trading prices of a country’s commodities. After more than two decades of Doi Moi, Vietnam has highly been involved in international economies. Upon its internationalization, RMB (Chinese Renminbi) has been empirically proven to be an invoicing currency of Vietnam when Vietnam imports goods from abroad. Based on our preliminary research, two main findings are noteworthy. Firstly, the degree of intra-industry between the trade of Vietnam and China has been increasing. In particular, the vertical intra-industry trade accounts for the biggest proportion of the Vietnam–China intra-industry trade. Secondly, most of Vietnam’s trading goods are of low quality in relation to China. Nevertheless, Vietnam’s quality of goods has witnessed an improvement from 2001 to 2016. The main objective of this part is to research the heterogeneous ERPT into Vietnam’s import prices from China using highly disaggregated 6-digit HS data from 2001 to 2016.

Suggested Citation

  • Yan Tan & Yang Yang, 2022. "Trade Cooperation Between China and Vietnam from the Perspective of Intra-Industry Trade," Contributions to Economics, in: Bernadette Andreosso-O'Callaghan & Serge Rey & Robert Taylor (ed.), Sustainable Development in Asia, pages 201-221, Springer.
    • Handle: RePEc:spr:conchp:978-3-030-94679-1_11
    DOI: 10.1007/978-3-030-94679-1_11
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