Economic effects of trade patterns on productivity: Evidence from the Korean automobile industry

DukHee Lee and MiSuk Jung

Japan and the World Economy, 2009, vol. 21, issue 1, 71-84

Abstract: Among inter-firm trade patterns, the cooperative trade system has proved to be superior to arms-length or market-oriented trade in the long run. Within the cooperative trade system, the transition from dedicated (single supplier) trade to network trade is proving a remarkable phenomenon. In our theoretical model, we compare the relative economic efficiencies between dedicated and network trade systems. Then in empirical analysis, we examine the relationship between alternative trade patterns and the productivity of the automobile industry. The main results of the theoretical model show that network trade results in a higher profit level than dedicated trade as a rule, although network trade is less stable than dedicated trade. Empirical study reveals that increasing network trade leads to higher productivity.

Keywords: Network; trade; Dedicated; trade; Economic; efficiency; Total; factor; productivity (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0922-1425(08)00003-0
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:japwor:v:21:y:2009:i:1:p:71-84

Access Statistics for this article

Japan and the World Economy is currently edited by Robert Dekle and Yasushi Hamao

More articles in Japan and the World Economy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().