Title: FDI and intra-industry trade: theory and empirical evidence from the Visegrad Countries

Authors: Lukasz Ambroziak

Addresses: 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

Abstract: 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.

Keywords: 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.

DOI: 10.1504/IJEBR.2012.044252

International Journal of Economics and Business Research, 2012 Vol.4 No.1/2, pp.180 - 198

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 14 Dec 2011 *

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