TY - JOUR
T1 - Chinese bilateral intra-industry trade
T2 - A panel data study for 50 countries in the 1992-2001 period
AU - Zhang, Jianhong
AU - Van Witteloostuijn, Arjen
AU - Zhou, Chaohong
PY - 2005/10/1
Y1 - 2005/10/1
N2 - This study examines the features and determinants of Chinese intra-industry trade during the 1992-2001 transition period for 50 of China's trade partners. We disentangle total intra-industry trade (TIIT) into vertical intra-industry trade (VIIT) vis-à-vis horizontal intra-industry trade (HIIT), using data at the four-digit SITC level. The findings indicate that Chinese bilateral intra-industry trade, particularly VIIT, increased significantly during this transition period. VIIT appears to be positively related to differences in consumer patterns. HIIT is negatively related to these differences. In addition, we find that FDI has played an important role in determining IIT, especially VIIT. Other significant intra-industry trade drivers are geographical distance, economic size, trade openness and trade composition. Finally, the impact of China's liberalization policies and the special role of Hong Kong are demonstrated. We discuss a number of important business and political implications that can be drawn from our findings.
AB - This study examines the features and determinants of Chinese intra-industry trade during the 1992-2001 transition period for 50 of China's trade partners. We disentangle total intra-industry trade (TIIT) into vertical intra-industry trade (VIIT) vis-à-vis horizontal intra-industry trade (HIIT), using data at the four-digit SITC level. The findings indicate that Chinese bilateral intra-industry trade, particularly VIIT, increased significantly during this transition period. VIIT appears to be positively related to differences in consumer patterns. HIIT is negatively related to these differences. In addition, we find that FDI has played an important role in determining IIT, especially VIIT. Other significant intra-industry trade drivers are geographical distance, economic size, trade openness and trade composition. Finally, the impact of China's liberalization policies and the special role of Hong Kong are demonstrated. We discuss a number of important business and political implications that can be drawn from our findings.
KW - China
KW - Intra-industry trade
KW - Panel data
UR - http://www.scopus.com/inward/record.url?scp=33746911583&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=33746911583&partnerID=8YFLogxK
U2 - 10.1007/s10290-005-0041-9
DO - 10.1007/s10290-005-0041-9
M3 - Article
AN - SCOPUS:33746911583
SN - 1610-2878
VL - 141
SP - 510
EP - 540
JO - Review of World Economics
JF - Review of World Economics
IS - 3
ER -