Evolving Pattern of Intra-industry Trade Specialization of the New Member States of the EU: The Case of the Automotive Industry

FDI and Intra-industry Trade in the Automotive Industry in the New EU Member States

“…In some countries, an increase of horizontal intra-industry trade in the automotive sector has been recorded mirroring a fast catching up process and the involvement of transnational corporations' . Similar findings were reached by Ambroziak [2011], who analysed IIT in automotive products of the new EU Member States between 2000-2009. Ambroziak [2012b also studied IIT in the automotive industry in the European Union during the period 1995-2010.…”

“…Vertical IIT in auto-parts was positively correlated with FDI. Kawecka-Wyrzykowska [2009], who analysed IIT in automotive industry products of the new EU Member States in the period 2000-2007, confirmed a positive relationship between FDI and intra-industry trade. The author also concluded that 'trade in the automotive sector is not, as suggested by some previous studies, mainly of vertical character.…”

Economic Cycles in Emerging and Advanced Countries

“…17 Regardless of the fundamental economic ties linking the various countries, it could be that during a period characterized by global shocks, the correlation among economic cycles is greater than it is in a period characterized by local shocks, as a global shock acts by rendering the economic cycles of different countries more similar. Therefore, for the purposes of our investigation on the decoupling phenomenon, the information offered by the EMDEAD EMDEADHPT 1970197519801985199019952010197019751980198519901995 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Euclidean distance indicator is not so accurate because the indicator does not allow to distinguish between the effect due to the historical evolution of the economic ties among countries and the effect due to the historical evolution in the nature of the shocks. The Euclidean distance, although useful, can only provide certain rough indications, and so it is important to go more in deep in the empirical investigation through analysis enabling us to measure the influence of the AEs on the EEs and to measure how this influence has changed over the course of time.…”

“…At that time, the decoupling idea was not only supported by economists from a number of important international institutions, but also by practitioners. Big 11 The importance of decoupling in the definition of economic policies clearly emerges from analysis of the many reports by leading international institutions, e.g., the IMF (World Economic Outlook, April 2002, April 2007, October 2012, the European Bank for Reconstruction and Development (Transition Report 2009) and the Asian Development Bank (Asian Development Outlook 2009, 2010. 12 Known for coining the acronym "BRIC" for the world's biggest emerging markets of Brazil, Russia, India and China in 2001. investment firms like Goldman Sachs believed "China, together with emerging Asia, stands a very good chance of outperforming and decoupling from the US economy in the coming few years" (Asian Economics Flash 2007).…”

Intra-industry trade in the Visegrad countries: Does the linder hypothesis hold?

“…In trade between developed countries, horizontal IIT is expected to dominate. However, numerous studies have shown that trade of the Visegrad countries is dominated by vertical IIT (Černoša 2007;Fertő 2007;Jámbor 2014), especially by its lower-quality segment (Kawecka-Wyrzykowska 2009). This indicates that one of the primary drivers of the Visegrad IIT might be the relatively low labour costs in the region.…”