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Vertical and Horizontal Intra¡VIndustry Trade between Taiwan and China

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.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0803109-143338
Date03 August 2009
CreatorsHuang, Yong-Che
ContributorsYu-Kuan Lee, Diana HweiAn Tsai, Fahn, Jiin-ming, Jia-Hsi Wang
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageEnglish
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0803109-143338
Rightsnot_available, Copyright information available at source archive

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