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Fragmentation, Vertical Intra-Industry Trade, and Automobile components
Leitão, Nuno Carlos; Faustino, Horácio C.; Yoshida, YushiBy analyzing vertical intra-industry trade (VIIT) within Portugal's automobile parts and components industry, this study adds new empirical evidence for the international fragmentation of the production process. For trade partner countries, we choose the EU countries, the BRICs, and the US during the period 1995 to 2005. From panel data analysis, the empirical evidence supports the notion that shorter geographi...
Determinants of Vertical Intra-Industry Trade in the Automobile Manufacturing S...
Leitão, Nuno Carlos; Faustino, Horácio C.; Yoshida, YushiThis paper examines the determinants of vertical intra-industry trade (VIIT) in the automobile components industry between Portugal and the European Union 27 (EU-27) and the BRIC countries (Brazil, Russia, India and China) during the period 1995-2006. Using a static and a dynamic panel data analysis, the results indicate that VIIT is a positive function of the difference in per-capita GDP between Portugal and i...
Intra-Industry Trade between Japan and European Countries: a Closer Look at the...
Yoshida, Yushi; Leitão, Nuno Carlos; Faustino, Horácio C.In this paper, we provide an overview of the development of intra-industry (IIT) trade between Japan and various European countries, including both old and new EU members, as well as emerging Eastern European countries. For the measurement of intra-industry trade, we construct a vertical intra-industry trade (VIIT) measure for various margins of unit price ratios, in addition to a Grubel-Lloyd index. By varying...
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