Title: The United States direct investment and intra-industry trade with Japan, the Four Tigers and China
Authors: William X. Wei; Yu Peng; Meina Xu; Jin Zhang
Addresses: Asia Pacific Management Program, Institute of Asia Pacific Studies, MacEwan School of Business, Grant MacEwan University, RM 5-221H, 10700-104 Avenue, Edmonton, Alberta, T5J 4S2, Canada. ' Institute of International Business, Shanghai Institute of Foreign Trade, Shanghai 200336, China. ' Institute of International Business, Shanghai Institute of Foreign Trade, Shanghai 200336, China. ' School of Graduate Studies, University of Alberta, Edmonton, Alberta, T6G 2E1 Canada
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.
Keywords: intra-industry trade; FDI; foreign direct investment; USA; United States; Japan; China; Korea; Singapore; Hong Kong; Taiwan.
DOI: 10.1504/IJBEM.2012.046234
International Journal of Business and Emerging Markets, 2012 Vol.4 No.2, pp.91 - 106
Received: 06 Apr 2011
Accepted: 08 May 2011
Published online: 15 Nov 2014 *