The United States direct investment and intra-industry trade with Japan, the Four Tigers and China
by William X. Wei; Yu Peng; Meina Xu; Jin Zhang
International Journal of Business and Emerging Markets (IJBEM), Vol. 4, No. 2, 2012

Abstract: This study analyses the differences in Intra-Industry Trade (IIT) patterns between the USA and Japan, China and the Four Tigers: Korea, Singapore, Hong Kong and Taiwan. The estimated IIT indices show US-Japan trade with the highest level of IIT and US-China trade with the most rapid growth in IIT. The empirical data shows that US direct investment enhanced its IIT with East Asia countries as a whole and with Japan, the Four Tigers and China separately, but the effects of US FDI on IIT for the three groups are diverse.

Online publication date: Sat, 15-Nov-2014

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