International trade plays an important role in Taiwan economic development. In recent years, under the globalization and regionalization tendencies, Taiwan faced huge challenges. The international relationship between Taiwan and China had been improved a lot. The bilateral trade between Taiwan and China is the getting more and more important. This paper measures intra- industry trade (IIT) indicators between Taiwan and China from 2000 to 2008 to analyze the bilateral trade structure between Taiwan and China. I analyze further how the horizontal or the vertical IIT is orientated by relative unit va lue of imports and exports to identify differences in the quality of products traded between Taiwan and China. We also investigate market size, demand similarity, and trade imbalance to be determinants of the IIT structure. Other influenc ing factors include foreign direct Investment and barriers to trade. The empirical results show that, in general, the number of industries that engage in IIT and the overall level of IIT have been increased. We also find that the majority of IIT industries belongs to vertical IIT (VIIT), and the pattern of expansion is dominated by VIIT as well. For most industries, Chinese products imported from Taiwan are generally of a higher quality than the products Taiwanese products imported from China. And furthermore the policy implications discussions on the Government¡¦s promoting domestic and cross strait economy measures are conducted and derived.

Thesis (master's)--Thammasat University, May, 2005. / Includes bibliographical references (leaves 132-137).

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Thesis (B.Sc. (Honours) in Economics)--Singapore Management University, 2006. / Senior thesis in part fulfillment for the BSc (Honours) in Economics degree presented to the School of Economics and Social Sciences, Singapore Management University 2005-2006. Includes bibliographical references (p. 31-33).

This paper aims to use intra-industry trade (IIT) indices from 2000 to 2007 years to analyze whether and how the bilateral trade structure between Taiwan and China has changed and developed in recent years and predict the trend in the future. In order to treat the division of labor, we analyze further the horizontal or the vertical IIT is oriented by using relative unit values of imports and exports to identify differences in the quality of products that are traded between Taiwan and China. Besides, we add several independent variables and find out the influence factors of the whole IIT are market size, demand similarity, and trade imbalance by using Ordinary Least Squares method. Also, the influence factors of IT industry are foreign direct investment and barriers to trade. The empirical results show that, in general, the number of industries that engage in IIT and the level of IIT have increased. We also find that the majority of IIT is belonged to vertical differences, and the pattern of expansion is dominated by VIIT as well. Productions that are imported to China from Taiwan are generally of a higher quality than products imported to Taiwan from China, however, this paper also notes that in some industries the reverse is true.

In this dissertation I examine the informational externalities of going public decisions for industrial and banking sector. The results show that industrial rivals have positive valuation effects only in response to venture backed IPOs and no significant reaction in response to non-venture backed IPOs. I also find evidence that the effect on rival firms is stronger if they operate in low concentrated industries (i.e. high competition) and have low growth opportunities. The relative size of IPO firm seems to play an important role in the direction and magnitude of industry rivals' valuation effects. Negative information revealed in the form of downward price revisions adversely affect rival firms' valuation. Positive information is also conveyed at the IPO announcements in banking industry. Bank rivals experience wealth gains if they are headquartered in the same state and no valuation effects if they are headquartered in the same region as the announcing bank. However, positive and significant reactions are noted in Mid-Atlantic and Southwest regions and negative reaction in Midwest region. Overall, these findings confirm that IPOs convey valuable information to the market and investors use this information to reassess the value of the rival firms.

Thesis (Ph.D.) -- McMaster University, 1999. / Includes bibliographical references. Also available via World Wide Web.

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After East Asian financial crisis in 1997 and European monetary unification in 1999, if it is suitable of establishing the Asian common monetary area becomes the hot topic. The precondition of establishing the monetary policy cooperation depends on the synchronization of various countries¡¦ business cycle co-movement. And the trade is the connector among the countries. Trade linkages seemed to have an influence on business cycle co-movement. Countries with close international trade link are more likely to be members of an optimal currency area. According to the theoretical literature, the impact of trade integration on business cycle correlation may go either way. On the one hand, if trade occurs mainly by Heckscher-Ollin or is of the Ricardian type, higher specialization would induce the industrial structures of the trading countries to diverge, resulting in less synchronized movements of business cycle. In contrast, if trade occurs mainly through intra-industry trade, specialization does not necessarily lead to less synchronized. In summary, the total effect of trade intensity on cycle correlation is theoretically ambiguous and poses a question that could only be solved empirically. The volume of trade in East Asia has increased continuously. This paper extends the study of Frankel and Rose (1998) to analyze the impact of trade integration on business cycle correlation and intra-industry trade by using SITC data and other macroeconomic factors. Moreover, using two-stage estimation and instruments to take into account the fact that trade intensity itself may be endogenous. Then, we use panel data to estimate our equation. By gathering annual information of 10 East Asian countries from 1987 to 2005, we found that higher trade integration leads higher business cycle synchronization. To sum up, intra-industry trade is the process of establishing East Asian common monetary area.

ABSTRACT This dissertation constructs three strategic trade models. The first model is a single-shot two-stage game model of intra-industry trade with trade retaliation against government provided export subsidies and lobbying by foreign firm on domestic government¡¦s import tariff. The second model is an infinite repeated game model of intra-industry where the history of government and firm interaction is the basis for constructing trade strategies. The third model is a single-shot three-stage game model of intra-industry trade with the linkage between domestic and foreign intermediate-input and final-good industries and the choice of optimal export subsidies in the two industries for two governments. Chapter 1 introduces the motivation, objectives, framework, and literature review of this dissertation. The literature review is organized as follows. Initially we review the foundations of the basic intra-industry trade model, where our model is rooted. Next we present the more significant papers that describe the sensitivity of the basic model, because our repeated game model will show yet another way that the basic model is sensitive. Next we present some dynamic game theoretic results, which we use to construct our repeated game model. Finally, we review some papers related to intermediate input and strategic trade. The first model is developed in Chapter 2. We discover that there are two perfect strategy subgame perfect equilibria in this model. And then an import tariff is available, and using that tariff will remove the benefits originally conferred by an export subsidy. Active trade policy is not eliminated by the two governments and tariff policy is larger than subsidy policy. Hence, an import tariff will more than offset the anticipated gains from a subsidy policy. There is no reason to believe that one equilibrium is better or more likely than another, because the highest payoffs equilibrium of the two governments and domestic firm is not the best payoff equilibrium of the foreign firm. We used the single-shot game model of Chapter 2 and molded it into a repeated game in Chapter 3. First, we found the set of Nash equilibria toward solving the repeated game model. Second, we only focused on the subgame perfect equilibria from the infinite Nash equilibria¡¦s set. We used the result in Fudenberg and Maskin (1986) to define the subgame perfect equilibria. Third, we showed that in the repeated game a subgame perfect strategy of free trade can increase all players¡¦ payoffs which are better than the single-shot game equilibrium payoffs. Chapter 4 develops the third model. We observe how domestic and foreign governments choose their optimum export subsidy policies for their intermediate input and final good production by using the linkage between domestic and foreign intermediate-input and final-good industries under the condition of vertical specialization. The result indicates that under the condition of vertical specialization, the two governments will choose positive export subsidies for their final goods while they will give no subsidies for their intermediate inputs. Chapter 5 presented the implications of vertical specialization on the cross-strait economy and trade. To maintain the competitive advantage of Taiwan economy and smoothly upgrade industry structure, transferring the labor-intensive industry and the labor-intensive production sections to China seems an optimum choice under the principle of comparative advantages. Nevertheless, for Taiwan, the upgrade of local industries has never stopped, but with the acceleration of industrial relocation, the transformation of production and trade structures are also taking place. The impact carried by this transformation is extensive and profound. In addition to obvious impact on the economic perspective, if the structure of employment market cannot react in time, a great social cost may be incurred. How to utilize the edge of industrial specialization between the Strait to strengthen Taiwanese industries¡¦ competitive, enhance product development ability through cooperation with multinational enterprises, dominate product development, and establish a center of task division for regional industries can be one of the main focuses in the development of Taiwan¡¦s industrial policy.