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China and India in the international fragmentation of automobile production

Alessia Amighini ()

China Economic Review, 2012, vol. 23, issue 2, 325-341

Abstract: We explore the relative positions of China and India in the international fragmentation of automobile production by analyzing disaggregated trade flows, while distinguishing between final and intermediate goods. The size and composition of trade has significantly moved in favor of trade of components over the last decade, but major differences exist between the two countries; China is a net car importer, while India is a net car exporter. We find evidence of the increasing importance of two-way trade in vertically differentiated goods, indicating that China and India are becoming more active participants in the vertical division of labor in automotive production.

Keywords: China; India; Vertical intra-industry trade; Fragmentation; Automotive sector (search for similar items in EconPapers)
JEL-codes: F14 F19 (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1016/j.chieco.2012.01.002

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China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu

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