Horizontal and Vertical Intra-Industry Trade: New Evidence from Korea, 1991-1999

Byun Jae Jin () and Sang-Hyop Lee
Additional contact information
Byun Jae Jin: Assistant Minister, Fiscal Planning Bureau, The Ministry of Planning and Budget, Republic of Korea

Global Economy Journal, 2005, vol. 5, issue 1, 31

Abstract: This study tests the validity of the alternative hypotheses in the intra-industry trade (IIT) literature using information on Korea's trade between 1991 and 1999. The study refines previous studies by breaking down IIT into horizontally and vertically differentiated products, controlling for country fixed-effects, and using more variables relevant to Korea's industry data. The main results suggest that some conflicting results of previous empirical studies could be caused by the use of the aggregate approach itself. Most of all, variations of the level of IIT in Korea are better explained by vertical IIT. Furthermore, while the hypotheses derived from the theoretical models of horizontal IIT and vertical IIT are generally confirmed by the empirical analysis, the hypothesis of demand similarity was not supported. The results also favor the competitive market structure explanation for both types of IIT in Korea.

Keywords: Intra-industry trade; differentiated products; Korea’s trade (search for similar items in EconPapers)
Date: 2005
References: View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://doi.org/10.2202/1524-5861.1036 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

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:bpj:glecon:v:5:y:2005:i:1:n:3

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/gej/html

DOI: 10.2202/1524-5861.1036

Access Statistics for this article

Global Economy Journal is currently edited by Jannett Highfill

More articles in Global Economy Journal from De Gruyter
Bibliographic data for series maintained by Peter Golla ().