International Journal of Economics and Business Research http://www.inderscience.com/browse/index.php?journalID=310&year=2012&vol=4&issue=1/2 Inderscience Publishers Ltd en-uk International Journal of Economics and Business Research 1756-9850 1756-9869 © 2012 Inderscience Publishers Ltd editor@inderscience.com https://www.inderscience.com/images/files/coverImgs/ijebr_scoverijebr.jpg http://www.inderscience.com/browse/index.php?journalID=310&year=2012&vol=4&issue=1/2 http://www.inderscience.com/link.php?id=44241 Using data that represent the six-digit North American Industrial Classification System-classified industries that comprise the US manufacturing sector and that span the years 1989 2005, we test the validity of the smooth adjustment hypothesis (SAH). To our knowledge, this is the first examination of the SAH for the USA. The results of our empirical analysis are consistent with the confirmation of the SAH. Further, using measures of vertical marginal intra-industry trade and of horizontal marginal intra-industry trade, we find that the latter has a stronger effect on employment of production workers than does the former. The findings suggest that for total industry-level employment and for industry-level production worker employment, intra-industry trade expansion inherently involves lower adjustment costs as compared to inter-industry trade expansion. US manufacturing and vertical/horizontal intra-industry trade: examining the smooth adjustment hypothesis
Roger White; Cheng Chen
International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 1 - 20
Using data that represent the six-digit North American Industrial Classification System-classified industries that comprise the US manufacturing sector and that span the years 1989 2005, we test the validity of the smooth adjustment hypothesis (SAH). To our knowledge, this is the first examination of the SAH for the USA. The results of our empirical analysis are consistent with the confirmation of the SAH. Further, using measures of vertical marginal intra-industry trade and of horizontal marginal intra-industry trade, we find that the latter has a stronger effect on employment of production workers than does the former. The findings suggest that for total industry-level employment and for industry-level production worker employment, intra-industry trade expansion inherently involves lower adjustment costs as compared to inter-industry trade expansion.

]]> 10.1504/IJEBR.2012.044241 International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 1 - 20 Roger White; Cheng Chen Department of Economics, Franklin & Marshall College, 415 Harrisburg Pike, Lancaster, PA 17603, USA ' Department of Economics, Franklin & Marshall College, 415 Harrisburg Pike, Lancaster, PA 17603, USA adjustment costs manufacturing industry horizontal trade vertical trade marginal trade smooth adjustment hypothesis USA United States employment production workers trade expansion economics business research intra-industry trade. 2011-12-14T23:20:50-05:00 4 1/2 1 20 2011-12-14T23:20:50-05:00 http://www.inderscience.com/link.php?id=44242 The complex nature of ‘international outsourcing’ makes it difficult to quantify its employment and broader impacts on national economies. Indeed, available evidence on the extent of ‘offshoring’ by US firms is scant, rendering analyses of its economic impacts as largely unreliable. Attempts to gauge its domestic employment effects have been limited both by definitional problems and data limitations, even when the immeasurable dimensions of offshoring are ignored. This work offers a quantitative assessment of the importance of ‘captive offshoring’ in relation to the entire US economy. Using government data that report foreign affiliate sales back to US parents, we provide ‘back of the envelope’ estimates of the domestic employment effects of vertically motivated foreign direct investment. Although this trend has accelerated most rapidly within the services sector, the findings suggest that ‘high-tech’ manufacturing industries are a major and growing source of job loss. Captive offshoring by US multinationals: measuring the domestic employment impacts of vertical FDI
J.K. Mullen; Martin Williams
International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 21 - 34
The complex nature of ‘international outsourcing’ makes it difficult to quantify its employment and broader impacts on national economies. Indeed, available evidence on the extent of ‘offshoring’ by US firms is scant, rendering analyses of its economic impacts as largely unreliable. Attempts to gauge its domestic employment effects have been limited both by definitional problems and data limitations, even when the immeasurable dimensions of offshoring are ignored. This work offers a quantitative assessment of the importance of ‘captive offshoring’ in relation to the entire US economy. Using government data that report foreign affiliate sales back to US parents, we provide ‘back of the envelope’ estimates of the domestic employment effects of vertically motivated foreign direct investment. Although this trend has accelerated most rapidly within the services sector, the findings suggest that ‘high-tech’ manufacturing industries are a major and growing source of job loss.

]]> 10.1504/IJEBR.2012.044242 International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 21 - 34 J.K. Mullen; Martin Williams School of Business, Clarkson University, Potsdam, NY 13699, USA ' Department of Economics, Northern Illinois University, DeKalb, IL 60115, USA foreign direct investment captive offshoring outward direct investment vertical FDI foreign affiliates intra-firm trade multinational corporations MNCs domestic employment employment impacts USA United States international outsourcing national economies economic impact definitional problems data limitations immeasurable dimensions foreign sales parent companies services sector service industry high-tech industries manufacturing industries high technology job losses unemployment economics business research intra-industry trade. 2011-12-14T23:20:50-05:00 4 1/2 21 34 2011-12-14T23:20:50-05:00 http://www.inderscience.com/link.php?id=44243 According to smooth adjustment hypothesis (SAH), intra-industry trade (IIT) has low adjustment cost compared with inter-industry trade. The purpose of this paper is to examine the hypothesis by using panel technique for Iran’s manufacturing industries during 2002 2006. Comparing with other empirical studies, this paper has used marginal horizontal and vertical IIT as well as marginal intra-industry trade (MIIT) to test SAH. The obtained results do not support the mentioned hypothesis for MIIT. On the other hand, by distinguishing MIIT to marginal horizontal and vertical IIT, this hypothesis is confirmed for the former. This result is justifiable since marginal horizontal IIT is a change of IIT with similar factor intensity, whereas marginal vertical IIT is mainly based on differences in factor endowment. Marginal intra-industry trade and adjustment costs: the case study of Iran’s manufacturing industries
Saeed Rasekhi; Saman Ghaderi
International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 35 - 43
According to smooth adjustment hypothesis (SAH), intra-industry trade (IIT) has low adjustment cost compared with inter-industry trade. The purpose of this paper is to examine the hypothesis by using panel technique for Iran’s manufacturing industries during 2002 2006. Comparing with other empirical studies, this paper has used marginal horizontal and vertical IIT as well as marginal intra-industry trade (MIIT) to test SAH. The obtained results do not support the mentioned hypothesis for MIIT. On the other hand, by distinguishing MIIT to marginal horizontal and vertical IIT, this hypothesis is confirmed for the former. This result is justifiable since marginal horizontal IIT is a change of IIT with similar factor intensity, whereas marginal vertical IIT is mainly based on differences in factor endowment.

]]> 10.1504/IJEBR.2012.044243 International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 35 - 43 Saeed Rasekhi; Saman Ghaderi Faculty of Economics and Administrative Science, Department of Economics, University of Mazandaran, Air Force Ave, Babolsar, Iran ' Department of Economics, University of Mazandaran, Air Force Ave, Babolsar, Iran smooth adjustment hypothesis horizontal trade vertical trade marginal trade adjustment costs Iran manufacturing industry panel data inter-industry trade factor intensity factor endowment economics business research intra-industry trade. 2011-12-14T23:20:50-05:00 4 1/2 35 43 2011-12-14T23:20:50-05:00 http://www.inderscience.com/link.php?id=44244 This paper aims to contribute empirically to the knowledge concerning the nature and causes of Italian vertical intra-industry trade (VIIT), distinguishing between high- and low-quality VIIT. The value-added of this study arises from the fact that it utilises a new approach to measure country-specific determinants, with the advantage that it eliminates the effects linked to the hypothesis of homogeneity between sectors within the same country. Therefore, differently from past studies on intra-industry trade, in this paper the characteristics of a particular country are measured by referring to information not only at aggregated level, but also at industry level. Our findings reveal that the determinants are not only same for the three dependent variables, but also depend on the technological intensity of goods. This confirms the particular nature of the Italian specialisation model, which is very different from that in other industrialised countries that tend to be located, at the higher end of the price-quality spectrum. Vertical intra-industry trade in higher and lower quality: a new approach of measuring country-specific determinants
Rosanna Pittiglio; Filippo Reganati
International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 44 - 62
This paper aims to contribute empirically to the knowledge concerning the nature and causes of Italian vertical intra-industry trade (VIIT), distinguishing between high- and low-quality VIIT. The value-added of this study arises from the fact that it utilises a new approach to measure country-specific determinants, with the advantage that it eliminates the effects linked to the hypothesis of homogeneity between sectors within the same country. Therefore, differently from past studies on intra-industry trade, in this paper the characteristics of a particular country are measured by referring to information not only at aggregated level, but also at industry level. Our findings reveal that the determinants are not only same for the three dependent variables, but also depend on the technological intensity of goods. This confirms the particular nature of the Italian specialisation model, which is very different from that in other industrialised countries that tend to be located, at the higher end of the price-quality spectrum.

]]> 10.1504/IJEBR.2012.044244 International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 44 - 62 Rosanna Pittiglio; Filippo Reganati Seconda Università di Napoli S.U.N., Corso Gran Priorato di Malta, 81043 Capua, CE, Italy ' Dipartimento di Comunicazione e Ricerca Sociale, Università di Roma ‘La Sapienza’, Via Salaria 113, 00100 Rome, Italy vertical trade product quality product differentiation higher quality trade lower quality trade country-specific determinants determinant measurement Italy homogeneity industrial sectors dependent variables technological intensity industrialised countries price-quality spectrum economics business research intra-industry trade. 2011-12-14T23:20:50-05:00 4 1/2 44 62 2011-12-14T23:20:50-05:00 http://www.inderscience.com/link.php?id=44245 This study investigates factors influencing bilateral intra-industry trade (IIT) between South Africa and main trading partners in the auto industry, crucial to managers and policy-makers within this industry. The econometric results of the gravity model of IIT are statistically and economically significant in the context of the fixed effects method of estimation. Thus, the econometric investigation reveals that IIT is positively influenced by difference in economic size, trade openness and foreign direct investment, while it is negatively affected by geographical distance, economies of scale and automotive assistance. The findings of this study propose advancing trade liberalisation and deregulation of the South African auto industry to enhance IIT levels. Factors influencing bilateral intra-industry trade in the auto industry: the case of South Africa
Maylene Y. Damoense-Azevedo; André C. Jordaan
International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 63 - 82
This study investigates factors influencing bilateral intra-industry trade (IIT) between South Africa and main trading partners in the auto industry, crucial to managers and policy-makers within this industry. The econometric results of the gravity model of IIT are statistically and economically significant in the context of the fixed effects method of estimation. Thus, the econometric investigation reveals that IIT is positively influenced by difference in economic size, trade openness and foreign direct investment, while it is negatively affected by geographical distance, economies of scale and automotive assistance. The findings of this study propose advancing trade liberalisation and deregulation of the South African auto industry to enhance IIT levels.

]]> 10.1504/IJEBR.2012.044245 International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 63 - 82 Maylene Y. Damoense-Azevedo; André C. Jordaan Department of Economics, School of Business and Economics, Monash University South Africa Campus, Roodepoort 1725, South Africa ' Department of Economics, University of Pretoria, Pretoria 0001, South Africa gravity models automobile industry South Africa bilateral trade trading partners managers policy makers econometrics econometric investigations economic size trade openness foreign direct investment FDI geographical distance economies of scale automotive assistance trade liberalisation trade deregulation economics business research intra-industry trade. 2011-12-14T23:20:50-05:00 4 1/2 63 82 2011-12-14T23:20:50-05:00 http://www.inderscience.com/link.php?id=44246 This study attempts to analyse the extent of intra-industry trade (IIT) in India’s agricultural trade. This study showed that the agricultural trade between India and its two major trading partners, the USA and European Union, was mainly inter-industry in nature. However, there was a mild tendency for IIT to increase during the period of 2000 2008. The marginal intra-industry trade calculated for trade between both the partners indicated that the export was expanding at the cost of imports. An analysis of India’s bilateral intra-industry trade in agricultural products
Poornima Varma
International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 83 - 95
This study attempts to analyse the extent of intra-industry trade (IIT) in India’s agricultural trade. This study showed that the agricultural trade between India and its two major trading partners, the USA and European Union, was mainly inter-industry in nature. However, there was a mild tendency for IIT to increase during the period of 2000 2008. The marginal intra-industry trade calculated for trade between both the partners indicated that the export was expanding at the cost of imports.

]]> 10.1504/IJEBR.2012.044246 International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 83 - 95 Poornima Varma Department of Policy Studies, TERI University, Vasant Kunj, New Delhi 110070, India marginal trade agricultural products USA EU European Union India United States bilateral trade trading partners inter-industry trade exports imports agriculture farming food economics business research intra-industry trade. 2011-12-14T23:20:50-05:00 4 1/2 83 95 2011-12-14T23:20:50-05:00 http://www.inderscience.com/link.php?id=44247 During the last decades, international trade flows of the industrialised countries became more and more intra-industry. At the same time, employment perspectives particularly of the low skilled by tendency deteriorated in these countries. This phenomenon is often traced back to the fact that intra-industry trade (IIT), which should theoretically involve low labour market adjustment, became increasingly vertical in nature. Against this background, this paper investigates the relationship between international trade patterns and selected labour market indicators in European countries. As the results show, neither inter- nor vertical intra-industry trade (VIIT) do have a verifiable effect on wage spread in EU member states. As far as structural unemployment is concerned, the latter increases only with the degree of countries’ specialisation on capital intensively manufactured products in inter-industry trade relations. Only for unemployment of the less skilled, a slightly significant impact of superior VIIT seems to exist. International trade patterns and labour markets an empirical analysis for EU member states
Goetz Zeddies
International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 96 - 115
During the last decades, international trade flows of the industrialised countries became more and more intra-industry. At the same time, employment perspectives particularly of the low skilled by tendency deteriorated in these countries. This phenomenon is often traced back to the fact that intra-industry trade (IIT), which should theoretically involve low labour market adjustment, became increasingly vertical in nature. Against this background, this paper investigates the relationship between international trade patterns and selected labour market indicators in European countries. As the results show, neither inter- nor vertical intra-industry trade (VIIT) do have a verifiable effect on wage spread in EU member states. As far as structural unemployment is concerned, the latter increases only with the degree of countries’ specialisation on capital intensively manufactured products in inter-industry trade relations. Only for unemployment of the less skilled, a slightly significant impact of superior VIIT seems to exist.

]]> 10.1504/IJEBR.2012.044247 International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 96 - 115 Goetz Zeddies Halle Institute for Economic Research (IWH), Kleine Maerkerstraße 8, D-06108 Halle/Saale, Germany European integration international economics trade markets labour markets market interactions labour demand structural unemployment international trade trade patterns EU European Union member states trade flows industrialised countries employment perspectives low skilled workers market adjustments vertical trade labour market indicators inter-industry trade wage spread capital intensive products manufactured products trade relations France Germany Austria Spain United Kingdom UK Czech Republic Holland Netherlands Italy Hungary Poland Portugal Slovakia Romania Bulgaria business research intra-industry trade. 2011-12-14T23:20:50-05:00 4 1/2 96 115 2011-12-14T23:20:50-05:00 http://www.inderscience.com/link.php?id=44248 This paper examines the interaction on intra-industry trade (IIT) and foreign direct investment (FDI) with special attention to the Association of Southeast Asian Nations (ASEAN). We introduce the 2×3×3 knowledge-capital model, recently proposed by Baltagi et al. (2007) and Uttama and Péridy (2009). The theoretical implications are suggested, not only how IIT is determined by country characteristics, such as similarity in market size and factor differentials, but also trade costs as well as regional economic integration. Moreover, it also empirically investigates the determinants of aggregated and disaggregated IIT in five ASEAN countries over the period 19952008, concerned with what extent complex FDIs boost IIT. Using spatial panel data model, we find the fact that the empirical results are consistent with the theoretical predictions. Vertical FDI tends to discourage ASEAN’s IIT, whereas complex horizontal FDI in neighbours tends to encourage its IIT in ASEAN. Some new evidence on intra-industry trade and complex FDI in ASEAN countries: a spatial panel approach
Nathapornpan Piyaareekul Uttama
International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 116 - 131
This paper examines the interaction on intra-industry trade (IIT) and foreign direct investment (FDI) with special attention to the Association of Southeast Asian Nations (ASEAN). We introduce the 2×3×3 knowledge-capital model, recently proposed by Baltagi et al. (2007) and Uttama and Péridy (2009). The theoretical implications are suggested, not only how IIT is determined by country characteristics, such as similarity in market size and factor differentials, but also trade costs as well as regional economic integration. Moreover, it also empirically investigates the determinants of aggregated and disaggregated IIT in five ASEAN countries over the period 19952008, concerned with what extent complex FDIs boost IIT. Using spatial panel data model, we find the fact that the empirical results are consistent with the theoretical predictions. Vertical FDI tends to discourage ASEAN’s IIT, whereas complex horizontal FDI in neighbours tends to encourage its IIT in ASEAN.

]]> 10.1504/IJEBR.2012.044248 International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 116 - 131 Nathapornpan Piyaareekul Uttama School of Management, Mae Fah Luang University, 333 Moo 1, Tasud, Muang, Chiang Rai 57100, Thailand foreign direct investment spatial econometrics ASEAN Association of Southeast Asian Nations Indonesia Malaysia Philippines Singapore Thailand spatial panels knowledge-capital models Badi Hani Baltagi Nathapornpan Piyaareekul Uttama country characteristics market size factor differentials trade costs economic integration vertical FDI complex FDI horizontal FDI Nicolas Péridy economics business research intra-industry trade. 2011-12-14T23:20:50-05:00 4 1/2 116 131 2011-12-14T23:20:50-05:00 http://www.inderscience.com/link.php?id=44249 We examine some controversial country-specific factors influencing vertical and horizontal intra-industry trade including foreign direct investment and income distributions. As concerns, the effect of differences in countries’ levels of economic development (richness), both theories and econometric estimation results are diverging (basically concerning the share of vertical intra-industry trade). Our purpose is getting closer to the right answers to these more or less open questions, and the basic particularity of our analysis is the examination of the issues in the trade between countries with various differences of richness. Controversial issues in factors determining intra-industry trade
Imre Ferto; Károly Attila Soós
International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 132 - 148
We examine some controversial country-specific factors influencing vertical and horizontal intra-industry trade including foreign direct investment and income distributions. As concerns, the effect of differences in countries’ levels of economic development (richness), both theories and econometric estimation results are diverging (basically concerning the share of vertical intra-industry trade). Our purpose is getting closer to the right answers to these more or less open questions, and the basic particularity of our analysis is the examination of the issues in the trade between countries with various differences of richness.

]]> 10.1504/IJEBR.2012.044249 International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 132 - 148 Imre Ferto; Károly Attila Soós Corvinus University of Budapest, Fo vám tér 8, Budapest H-1093, Hungary; Institute of Economics, Hungarian Academy of Sciences, Budaörsi út 45, Budapest H-1112, Hungary ' Institute of Economics, Hungarian Academy of Sciences, Budaörsi út 45, Budapest H-1112, Hungary FDI foreign direct investment income distribution economic development country-specific factors vertical trade horizontal trade richness econometric estimations EU European Union member states Austria Denmark Finland France Germany Greece Ireland Italy Holland Netherlands Portugal Spain Sweden United Kingdom UK Belgium Luxembourg Bulgaria Croatia Czech Republic Estonia Hungary Latvia Lithuania Poland Romania Slovakia Slovenia Belarus Kazakhstan Moldova Russia Ukraine Russian Federation economics business research intra-industry trade. 2011-12-14T23:20:50-05:00 4 1/2 132 148 2011-12-14T23:20:50-05:00 http://www.inderscience.com/link.php?id=44250 Measuring horizontal intra-industry trade and vertical intra-industry trade (VIIT) requires that traded products be classified as horizontally differentiated and vertically differentiated, and Greenaway et al. (1994) do this by using the relative unit values of exports and imports. We used the five-digit SITC, Rev. 3 trade data for the Turkish manufacturing sector, for 1987 2001. We found that: 1) vertical industries dominated horizontal industries and low quality vertical industries dominated high quality vertical industries; 2) in terms of the decomposition of the nationally aggregated Grubel Lloyd (GL) indexes, the VIIT component constituted a significant part of this index all through the period; 3) when the GL index was decomposed at the three-digit level for the years 1989, 1992, 1995, 1998 and 2001 and only for those sectors with GL indexes greater than 0.5, it was found that the number of such industries increased steadily overtime and vertical industries dominated throughout the period. Measuring vertical and horizontal intra-industry trade: the case for Turkey
Guzin Erlat; Haluk Erlat
International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 149 - 165
Measuring horizontal intra-industry trade and vertical intra-industry trade (VIIT) requires that traded products be classified as horizontally differentiated and vertically differentiated, and Greenaway et al. (1994) do this by using the relative unit values of exports and imports. We used the five-digit SITC, Rev. 3 trade data for the Turkish manufacturing sector, for 1987 2001. We found that: 1) vertical industries dominated horizontal industries and low quality vertical industries dominated high quality vertical industries; 2) in terms of the decomposition of the nationally aggregated Grubel Lloyd (GL) indexes, the VIIT component constituted a significant part of this index all through the period; 3) when the GL index was decomposed at the three-digit level for the years 1989, 1992, 1995, 1998 and 2001 and only for those sectors with GL indexes greater than 0.5, it was found that the number of such industries increased steadily overtime and vertical industries dominated throughout the period.

]]> 10.1504/IJEBR.2012.044250 International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 149 - 165 Guzin Erlat; Haluk Erlat Department of Economics, Middle East Technical University, Ankara 06800, Turkey ' Department of Economics, Middle East Technical University, Ankara 06800, Turkey vertical differentiation horizontal differentiation GL index Herb Grubel Peter Lloyd Turkey traded products relative unit values exports imports manufacturing industry vertical industries horizontal industries low quality industries high quality industries index decomposition economics business research intra-industry trade. 2011-12-14T23:20:50-05:00 4 1/2 149 165 2011-12-14T23:20:50-05:00 http://www.inderscience.com/link.php?id=44252 This paper analyses impact of the foreign direct investment (FDI) on the intra-industry trade (IIT) patterns in the Visegrad Countries (VCs) (the Czech Republic, Hungary, Poland and Slovakia) in the period 1995 2008. The FDI has been a driving force of these countries’ foreign trade, especially for the IIT. From the theory and previous empirical studies, it results that the FDI has a positive impact on vertical intra-industry trade (VIIT), while the influence of this variable on horizontal intra-industry trade (HIIT) is ambiguous. Using a panel data approach, the determinants of HIIT and VIIT were identified. The obtained results confirmed that the FDI in the VCs stimulated not only VIIT, but also HIIT. FDI and intra-industry trade: theory and empirical evidence from the Visegrad Countries
Lukasz Ambroziak
International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 180 - 198
This paper analyses impact of the foreign direct investment (FDI) on the intra-industry trade (IIT) patterns in the Visegrad Countries (VCs) (the Czech Republic, Hungary, Poland and Slovakia) in the period 1995 2008. The FDI has been a driving force of these countries’ foreign trade, especially for the IIT. From the theory and previous empirical studies, it results that the FDI has a positive impact on vertical intra-industry trade (VIIT), while the influence of this variable on horizontal intra-industry trade (HIIT) is ambiguous. Using a panel data approach, the determinants of HIIT and VIIT were identified. The obtained results confirmed that the FDI in the VCs stimulated not only VIIT, but also HIIT.

]]> 10.1504/IJEBR.2012.044252 International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 180 - 198 Lukasz Ambroziak Institute for Market, Consumption and Business Cycles Research, Al. Jerozolimskie 87, 02-001 Warsaw, Poland; Jean Monnet Chair of European Integration, Warsaw School of Economics, ul. Madalinskiego 6/8, 02-513 Warsaw, Poland horizontal trade vertical trade FDI foreign direct investment Visegrad Group Visegrad Four V4 Central Europe Czech Republic Hungary Poland Slovakia foreign trade panel data economics business research intra-industry trade. 2011-12-14T23:20:50-05:00 4 1/2 180 198 2011-12-14T23:20:50-05:00 http://www.inderscience.com/link.php?id=44253 Intra-industry trade (IIT) plays a pivotal role in Indian textile industry. It is a new phenomenon. Since 1960, this concept has been used by Pieter Verdoorn and Bela Balassa. The aim of this paper is to measure the level of IIT in Indian textile industry. For this purpose, the Grubel Lloyd index has been calculated. The analysis is based on annual time series data of export and import. The results reveal that during 1990s, the level of IIT in Indian textile industry was higher, whereas since inception of 21st century it went down. It is due to rise in net export. Intra-industry trade in textile industry: the case of India
Priyanka Singh Bhadouria; N.M.P. Verma
International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 199 - 212
Intra-industry trade (IIT) plays a pivotal role in Indian textile industry. It is a new phenomenon. Since 1960, this concept has been used by Pieter Verdoorn and Bela Balassa. The aim of this paper is to measure the level of IIT in Indian textile industry. For this purpose, the Grubel Lloyd index has been calculated. The analysis is based on annual time series data of export and import. The results reveal that during 1990s, the level of IIT in Indian textile industry was higher, whereas since inception of 21st century it went down. It is due to rise in net export.

]]> 10.1504/IJEBR.2012.044253 International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 199 - 212 Priyanka Singh Bhadouria; N.M.P. Verma Department of Economics, Babasaheb Bhimrao Ambedkar University, Lucknow 226025, India ' Department of Economics, Babasaheb Bhimrao Ambedkar University, Lucknow 226025, India GL index Herb Grubel Peter Lloyd textile industry India net exports textiles Pieter Verdoorn Bela Balassa annual time series imports economics business research intra-industry trade. 2011-12-14T23:20:50-05:00 4 1/2 199 212 2011-12-14T23:20:50-05:00 http://www.inderscience.com/link.php?id=44254 The firm-level approach to intra-industry trade reveals that the variation in the number of exporters or exported varieties (extensive margin) accounts for a greater share of the changes in aggregate trade than the variation in the average exports per firm variety (intensive margin). This paper shows vertical intra-firm trade follows a similar pattern. The share of intra-firm imports in total US imports is found to be higher, the higher the headquarters service intensity by industry of foreign affiliate. This increase materialises mostly in terms of new affiliates than in terms of more sales per existing affiliate. The endogenous choice of optimal number of affiliates can be rationalised in a theoretical framework that combines three ingredients a multiproduct setup, Antràs’ property-rights model and Melitz’s heterogeneity view on productivity applied to affiliates. The extensive margin of intrafirm trade
Xiang Gao
International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 213 - 232
The firm-level approach to intra-industry trade reveals that the variation in the number of exporters or exported varieties (extensive margin) accounts for a greater share of the changes in aggregate trade than the variation in the average exports per firm variety (intensive margin). This paper shows vertical intra-firm trade follows a similar pattern. The share of intra-firm imports in total US imports is found to be higher, the higher the headquarters service intensity by industry of foreign affiliate. This increase materialises mostly in terms of new affiliates than in terms of more sales per existing affiliate. The endogenous choice of optimal number of affiliates can be rationalised in a theoretical framework that combines three ingredients a multiproduct setup, Antràs’ property-rights model and Melitz’s heterogeneity view on productivity applied to affiliates.

]]> 10.1504/IJEBR.2012.044254 International Journal of Economics and Business Research, Vol. 4, No. 1/2 (2012) pp. 213 - 232 Xiang Gao School of International Business Administration, Shanghai University of Finance and Economics, 777 Guoding Road, Shanghai 200433, China extensive margins intra-firm trade FDI foreign direct investment multiproduct firms foreign affiliates productivity heterogeneity vertical integration outsourcing incomplete contracts exporters exported varieties exports aggregate trade vertical trade USA United States imports company headquarters service intensity sales endogenous choices Pol Antràs property rights Marc Melitz economics business research intra-industry trade. 2011-12-14T23:20:50-05:00 4 1/2 213 232 2011-12-14T23:20:50-05:00