Income Disparity, Vertical Intra-industry Trade, and Welfare in Integration

Wu, Zhi-Win; Lin, Yan-Shu

doi:10.1016/s2212-5671(13)00092-0

Cited by 2 publications

(1 citation statement)

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“…With regard to the factors influencing intra-industry trade, studies found that the main factors are: differences in market demand between countries [26,27], trade openness of partner countries [28,29], economic integration [23,30], and geographical distance [31,32]. Some scholars stated that per capita income differences [33], market scale [34,35], urbanization rate [17], resources endowment [18,36], trade quantity and structure [37,38], and foreign direct investment [39,40] also impact bilateral intra-industry trade. A study on the intra-industry trade of forest products between China and Russia concluded that the trade volume of forest products between the two countries was large, but the level of intra-industry trade was low, which was related to the difference in market demand between the two countries.…”

Section: Introductionmentioning

confidence: 99%

How Can Intra-Industry Trade of Forest Products be Promoted? An Empirical Analysis from China

Wang

Liu

Cheng

et al. 2019

Forests

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Understanding the evolution of the intra-industry trade of forest products between China and its main partner countries is a prerequisite for improving the flow of trade. The intra-industry trade status and the main influencing factors of Chinese forest products trade were measured and identified via use of bilateral forest product trade data between China and its 24 partners from 2000 to 2014, and use of static, marginal, and structural intra-industry trade indices. The results show that, firstly, intra-industry trade of the major Chinese forest products is exhibiting a low-level growth trend and has considerable growth potential. The top five countries with relatively high intra-industry trade levels are Italy, Germany, the United States, Vietnam, and Japan, and the bottom five are New Zealand, Chile, Brazil, Russia, and Spain. Secondly, the intra-industry trade among China and 13 countries, represented by South Korea, is low quality and vertical-type trade; the intra-industry trade among China and seven countries, represented by Thailand, is high quality and a vertical type of trade. Finally, the empirical analysis shows that trade openness and geographical distance are the key factors of intra-industry trade of forest products. The per capita gross domestic product gap, urbanization, foreign direct investment, forest area, and import and export value of forest products also have certain impacts on intra-industry trade.

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