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Title: |
Horizontal and Vertical Intra-industry Trade: The Case of ASEAN Trade in
Manufactures |
| Author: |
Hurley, Dene T. |
| Author
Affiliation: |
Lehman College,
CUNY |
| Source: |
International Economic Journal, Winter 2003, v. 17, no. 4, pp. 1-14 |
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Publication Date: |
Winter 2003 |
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Abstract: |
For over two
decades prior to the Asian Currency crisis of 1997, the economies of the
ASEAN-5 underwent an impressive economic expansion while increasing
their openness to trade. This paper examines the role of intra-industry
trade (IIT) in intra-ASEAN trade. Focusing on trade in manufactures, it
breaks down IIT by vertically (VIIT) and horizontally (HIIT)
differentiated goods, and identifies country-specific factors which
drive them. By 1996, while 60% of the total intra-ASEAN trade
constituted IIT, the share of IIT in trade in manufactures was even
higher, dominated by VIIT which reflected differences in capital-labor
intensity. Market size and foreign direct investment also influenced
both VIIT and HIIT. |
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