The Pattern and Determinants of Intra‐Industry Trade in Australian Manufacturing

Sharma, Kishor

doi:10.1111/1467-8462.00152

Cited by 21 publications

(29 citation statements)

References 23 publications

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“…Another important factor that is considered directly or indirectly is the product differentiation. it is worth mentioning that products can be differentiated in three main forms: horizontal, vertical and technological differentiation (Sharma 1999). intra-industry differences in the iiT can be affected by all three types of differentiation and specifically it is expected that the relationship between the iiT and the country-level product differentiation (cPD) will be positive.…”

Section: Review Of the Theoretical And Empirical Literaturementioning

confidence: 99%

Determinant factors of vertical intra industry trade in agricultural sector: A study of Iran and her main trading partners

Rasekhi¹,

Shojaee²

2012

AGR ECON-CZECH

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Abstract:The present study has investigated the country specific determinants of the vertical and total intra-industry trade between iran and its main trading partners (including 24 countries) in the agricultural products group during the time period [2001][2002][2003][2004][2005][2006][2007]. For this purpose, first we have measured the types of the intra-industry trade. Then we have examined the determinants of the vertical and total intra-industry trade in the agricultural sector by using the panel technique. Based on the obtained results, it has confirmed that economic development (both per capita income and hDi) has a positive and significance effect on the iran's bilateral intra-industry trade. Also, the results verify the Linder hypothesis. in sum, the iran's foreign trade in agricultural sector is mainly based on comparative advantage. Specifically, there is a negative and significant relationship between the revealed comparative advantage and the industry trade. in addition, the endowment of land affects positively the high vertical intra-industry trade. Also according to the results, the size market differences impact the intra-industry trade negatively.

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Section: Review Of the Theoretical And Empirical Literaturementioning

confidence: 99%

Determinant factors of vertical intra industry trade in agricultural sector: A study of Iran and her main trading partners

Rasekhi¹,

Shojaee²

2012

AGR ECON-CZECH

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“…Since large economies can readily gain from economies of scale, they can make use of benefits resulting from their large domestic market easily and so, have higher extent of IIT (Sharma, 2000). The ratio of pharmaceutical turnover (total sales) (TUR i ) to the number of pharmaceutical companies (MS i ) are used to compute economies of scale (ES i ) for Iran’s pharmaceutical industry, in this research.…”

Section: Methodsmentioning

confidence: 99%

Assessing the Factors Associated With Iran’s Intra-Industry Trade in Pharmaceuticals

Yusefzadeh¹,

Hadian²,

Gorji³

et al. 2015

GJHS

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Background:Pharmaceutical industry is a sensitive and profitable industry. If this industry wants to survive, it should be able to compete well in international markets. So, study of Iran’s intra-industry trade (IIT) in pharmaceuticals is essential in order to identify competitiveness potential of country and boost export capability in the global arena.Methods:This study assessed the factors associated with Iran’s intra-industry trade in pharmaceuticals with the rest of the world during the 2001–2012 periods using seasonal time series data at the four-digit SITC level. The data was collected from Iran’s pharmaceutical Statistics, World Bank and International Trade Center. Finally, we discussed a number of important policy recommendations to increase Iran’s IIT in pharmaceuticals.Results:The findings indicated that economies of scale, market structure and degree of economic development had a significantly positive impact on Iran’s intra-industry trade in pharmaceuticals and tariff trade barriers were negatively related to IIT. Product differentiation and technological advancement didn’t have the expected signs. In addition, we found that Iran’s IIT in pharmaceuticals have shown an increasing trend during the study period. Thus, the composition of Iran trade in pharmaceuticals has changed from inter-industry trade to intra-industry trade.Conclusions:In order to get more prepared for integration into the global economy, the development of Iran’s IIT in pharmaceuticals should be given priority. Therefore, paying attention to IIT could have an important role in serving pharmaceutical companies in relation to pharmaceutical trade.

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“…In addition, Leitão and Faustino (2007) also found a negative relationship between FDI with horizontal IIT. However, the study by Sharma (2000) on the pattern and determinants of IIT in the Australian manufacturing sector showed that FDI has a negative significant effect on IIT due to increased competition. Thus, these findings indicate that the effect of FDI on IIT is inconclusive.…”

Section: Literature Reviewmentioning

confidence: 99%

“…This study adopted the method used by Hu and Ma (1999), Sharma (2000), and Veeramani (2007) which uses the weighted distance as a proxy for geographical distance between trade partners. This is to avoid overestimating the internal or external distance ratio, which will result in an upward bias in the border effect estimate: org/10.15405/epsbs.2016.11.02.25 eISSN: 2357-1330 …”

Section: Geographical Distancementioning

confidence: 99%

Intra-Industry Trade in Machinery and Transport Equipment: Malaysia and its Trading Partners

Ma’in¹,

Kamaruzaman²,

Nathan³

2016

European Proceedings of Social &Amp; Behavioural Sciences

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Intra-industry trade (IIT) has become prominent across Asia including Malaysia due to the greater influence of globalization in international trade and rapid economic growth. The growth of IIT occurred because of its characteristics which could result in gains from trade through better exploitation of economies of scale and product differentiation as well as enhance innovation. Since IIT is important in increasing the growth of an economy through trade earnings trade, therefore there is a need to study the determinants of IIT in Malaysia. This study is focused on the manufacturing sector especially the machinery and transport equipment (SITC 7) from 1994 to 2014. IIT is calculated by using the Grubel Lloyd (GL) index. Panel data is utilized in performing panel cointegration and panel Granger causality tests. The Hausman specification test shows that the fixed effect least square dummy variable (LSDV) model is better than the random effects model. These tests were used to determine the relationship between the levels of IIT and its determinants namely differences in per capita GDP, foreign direct investment, geographical distance and technological advancement. The results show that the variables are cointegrated in the long run, in addition to the existence of short run relationships between intra-industry trade with differences in per capita GDP and foreign direct investment.

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The Pattern and Determinants of Intra‐Industry Trade in Australian Manufacturing

Cited by 21 publications

References 23 publications

Determinant factors of vertical intra industry trade in agricultural sector: A study of Iran and her main trading partners

Determinant factors of vertical intra industry trade in agricultural sector: A study of Iran and her main trading partners

Assessing the Factors Associated With Iran’s Intra-Industry Trade in Pharmaceuticals

Intra-Industry Trade in Machinery and Transport Equipment: Malaysia and its Trading Partners

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