An Empirical Study of the Transnational Production Sharing of the Asian NICs with Japan

Ken I Kim, Kyoo H Kim and James LeSage
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Ken I Kim: The University of Toledo
Kyoo H Kim: Bowling Green State University

Journal of International Business Studies, 1986, vol. 17, issue 2, 117-130

Abstract: The Purpose of the present study are: (1) to extend Kim and Kim's [1984] original study of transnational product sharing (TPS) of the newly Industrializing Countries (NICs) of Asia with Japan from an aggregate-flow analysis to a product sectoral analysis; and (2) to provide additional empirical evidence for the macro economic approach to trade.The results obtained from a time-serious multiple regression analysis of trade data of four product groups confirm that the hypothesized TPS is most robust in the unskilled-labor intensive and human capital intensive product groups and not significant in the natural resources intensive group. In the technology intensive group, both Japan and the rest of the world are found play an almost equally important role. The implications for U.S. firms, government, and other countries are discussed.© 1986 JIBS. Journal of International Business Studies (1986) 17, 117–130

Date: 1986
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