Intra-industry trade, fragmentation and export margins: An empirical examination of sub-regional international trade

Yushi Yoshida

The North American Journal of Economics and Finance, 2013, vol. 24, issue C, 125-138

Abstract: This study contributes to the existing empirical investigation of international trade by providing new evidence of intra-industry trade using sub-regions within a nation. We calculate the Grubel–Lloyd intra-industry trade index for 41 Japanese regions with Korea during the period from 1988 to 2006. In sub-regional intra-industry trade regression models, we introduce extensive and intensive margins of prefecture exports as new explanatory variables. We find that a rise in sub-regional intra-industry trade is driven by the introduction of a new variety of exports, while intra-industry trade is discouraged by an increase in the trade value of products that are already exported.

Keywords: Export variety; Fragmentation; Intra-industry trade; Regional trade; Vertical specialization (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (8)

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Related works:
Working Paper: Intra-Industry Trade Between Japan and Korea: Vertical Intra-Industry Trade, Fragmentation and Export Margins (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:24:y:2013:i:c:p:125-138

DOI: 10.1016/j.najef.2012.07.003

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