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

Yan Tan () and Yang Yang ()
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Yan Tan: School of Business, Yulin Normal University
Yang Yang: College of ASEAN Studies, Guangxi University for Nationalities

A chapter in Sustainable Development in Asia, 2022, pp 201-221 from Springer

Abstract: 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.

Keywords: China–Vietnam trade; ERPT; Intra-industry trade; Kernel density non-parameter estimations; Panel data (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:conchp:978-3-030-94679-1_11

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DOI: 10.1007/978-3-030-94679-1_11

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