Progress in Intra-industry Trade in the Greater Mekong Sub-region

Kenji Nozaki

Foreign Trade Review, 2016, vol. 51, issue 2, 147-161

Abstract: The Greater Mekong Sub-region (GMS) attracts investors’ interest today and economic linkage in the GMS is strengthening with the creation of a production network. This paper analyzes the division of labour in the production process by industry. Two industrial sectors are chosen, the clothing industry and automobile industry. Two types of analysis were conducted in this study: one is a detailed analysis of trade figures, with calculation of the Grubel and Lloyd indexes and unit trade value, and the other is the estimation of gravity model. Their results are consistent. In the clothing sector, which is a labour-intensive industry, intra-industry trades include items by both horizontal division of labour and vertical division of labour. In contrast, the automobile sector does not exhibit horizontal division of labour, and signs of vertical division of labour between Thailand and Vietnam are observed. As different types of industry involve the different types of production network, further research will be needed.

Keywords: Intra-industry trade; division of labour; Greater Mekong Sub-region (GMS); Grubel and Lloyd index; Gravity model (search for similar items in EconPapers)
JEL-codes: F14 F15 R11 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:sae:fortra:v:51:y:2016:i:2:p:147-161

DOI: 10.1177/0015732515625708

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