Intra-industry trade, reconsidered: The role of technology transfer and foreign direct investment

Research output: Contribution to journalArticle

19 Citations (Scopus)

Abstract

This paper investigates novel determinants of intra-industry trade (IIT) of late 1990s Japanese trade. Our empirical analysis shows that IIT is increased not only by the similarity of GDP and factor endowment but also by technology transfer via Japanese FDI. In particular, the current high proportion of Japanese IIT with Asian countries can be explained by technology transfer (licensing between headquarters and overseas affiliates) via FDI.

Original languageEnglish
Pages (from-to)1855-1876
Number of pages22
JournalWorld Economy
Volume30
Issue number12
DOIs
Publication statusPublished - 2007 Dec 1
Externally publishedYes

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

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