PUBLICATIONS & REPORTS
PUBLICATIONS & REPORTS
From Kitakyushu to the world: AGI, a research institute that studies Asia's economy and society
Development of Intra-Industry Trade between Korea and Japan: the Case of Automobile Parts Industry
| Author | Masaru Umemoto |
|---|---|
| Date of Publication | 2004. 3 |
| No. | 2004-04 |
| Download | 164KB |
Contents Introduction
This paper focuses on trade patterns of the automobile parts industries between Korea and Japan and examines the trends of intra-industry trade (IIT), which can be further divided into horizontal IIT (HIIT) and vertical IIT (VIIT). By comparison with the cases of other intra-regional IIT, this paper investigates the regional-specific factors of IIT to capture the main determinants of the IIT patterns between Korea and Japan. According to the econometric investigation, the decreasing differences in market size and transportation costs are major sources of IIT for Korea and Japan, suggesting that the Korea-Japan FTA could contribute to IIT growth between them.