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Intra-industry trade in manufactures: The case of Korea

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Abstract

Intra-Industry Trade in Manufactures: The Case of Korea. - This paper provides an empirical analysis of intra-industry trade (IIT) in Korea's foreign trade. First, we measure the share of IIT in Korea's trade of manufactures from 1977 to 1986. The share of IIT increased from 0.350 in 1977 to 0.502 in 1985, but declined to 0.421 in 1986. Second, we test hypotheses regarding country characteristics of IIT. Using the unadjusted Grubel-Lloyd index with a trade imbalance variable in the regression equations, we show that the extent of IIT is: (1) negatively correlated with differences in per capita incomes and with “economic distances” between Korea and its trading partners, and (2) positively correlated with the trade intensity between Korea and its trading partners and with the existence of a common cultural background.

Zusammenfassung

Intraindustrieller Handel mit gewerblichen Erzeugnissen am Beispiel von Korea. - Dieser Aufsatz liefert eine empirische Analyse des intraindustriellen Handels (IIH) für den koreanischen Auβenhandel. Erstens wird der Anteil des IIH an Koreas Handel mit Industriegütern zwischen 1977 und 1986 betrachtet: Er stieg von 1977 bis 1985 von 0.350 auf 0.502, fiel aber 1986 auf 0.421. Zweitens werden Hypothesen zu den länderspezifischen Merkmalen des IIH getestet, wobei der unkorrigierte Grubel-Lloyd-Index mit einer Variablen für Handelsungleichgewichte in den Regressionsgleichungen benutzt wird. Es zeigt sich, daβ das Ausmaβ des IIH negativ korreliert ist mit den Unterschieden im Pro-Kopf-Einkommen und der “ökonomischen Entfernung” zwischen Korea und seinen Handelspartnern, dagegen positiv mit der Handelsintensität sowie mit der Existenz eines gemeinsamen kulturellen Hintergrundes.

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Authors
  1. Hyun-Hoon Lee
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  2. Young-Youn Lee
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Lee, HH., Lee, YY. Intra-industry trade in manufactures: The case of Korea. Weltwirtschaftliches Archiv 129, 159–171 (1993). https://doi.org/10.1007/BF02707492

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