Horizontal Intra-Industry Trade in Korea: A Dynamic Panel Data Analysis. Issue 1 (30th April 2018)

• Record Type: Journal Article
• Authors: Doanh, Nguyen Khanh; Heo, Yoon
• Is Part Of: Journal of international logistics and trade. Volume 16:Issue 1(2018)
• Page Start: 1
• Page End: 10
• Publication Date: 2018-04-30
• Subjects: Intra-industry trade -- Korea -- System GMM -- HIIT -- Panel data; International trade -- Periodicals; Business logistics -- Periodicals; Commerce international -- Périodiques; Logistique (Organisation) -- Périodiques; Business logistics; International trade; Periodicals; 382.05
• DOI: 10.24006/jilt.2018.16.1.1
• Languages: English
• ISSNs: 1738-2122

Abstract

Abstract : This study investigates the patterns and determinants of Korea's horizontal intra-industry trade by employing a dynamic panel data analysis. The main findings of the study are as follows. An increase in the market size of both trading partners is associated with a higher level of horizontal intra-industry trade. Dissimilar economic sizes and per capita incomes have a negative effect on trade in horizontally differentiated products. Geographical distance and trade imbalance serve as obstacles to horizontal intra-industry trade. These findings have policy implications for reconsidering the orientation of promoting trade. Inclusive economic growth in the region, taking advantage of neighboring nations and making efforts to reduce trade imbalances between trading economies, can accelerate further trade expansion through horizontal intra-industry trade.