Trade Patterns and Determinants of International Specialization Structure between ASEAN and China

3 Pages Posted: 23 Sep 2014

See all articles by Jae Wan Cheong

Jae Wan Cheong

Korea Institute for International Economic Policy

Ho-Kyung Bang

Korea Institute for International Economic Policy

Date Written: September 19, 2014

Abstract

China and ASEAN are recognized as the most important markets in the world, hence they have emerged as global factories and parts production bases. And trade between China and ASEAN is rapidly expanding and ASEAN has taken position as one of China's three major trading partners. Over the last 20 years, there has been a rapid increase in intra-industry trade where differentiated products are traded within the same industries between China and ASEAN countries. Empirical analysis on determinants of the international specialization structure between China and ASEAN countries shows that the deepening structure of vertical international specialization between the two regions over the past 20 years has been directly influenced by variables representing national characteristics, such as distance (trading cost), common language, the size of the national economy and income gap as well as intra-regional foreign direct investment.

Keywords: Trade Patterns, Production network, China, Intra-industry trade, ASEAN, Economic cooperation

Suggested Citation

Cheong, Jae Wan and Bang, Ho-Kyung, Trade Patterns and Determinants of International Specialization Structure between ASEAN and China (September 19, 2014). KIEP Research Paper No. World Economic Update-14-31. Available at SSRN: https://ssrn.com/abstract=2500077 or http://dx.doi.org/10.2139/ssrn.2500077

Jae Wan Cheong (Contact Author)

Korea Institute for International Economic Policy ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

Ho-Kyung Bang

Korea Institute for International Economic Policy ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

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