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The Analysis of Cross-Strait Trade and Industry Fragmentation

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.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0815108-142614
Date15 August 2008
CreatorsLiu, Yi-Shiun
ContributorsChun-Hsiung Liao, Shih-Jye Wu, Diana H.A. Tsai
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0815108-142614
Rightsnot_available, Copyright information available at source archive

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