An Analysis of Intra-Industry Trade between Japan, Malaysia and China

This paper investigates the bilateral trade pattern between Japan,Malaysia and China (JMC) using the intra-industry trade (IIT) index analysis. Our empirical findings revealed the following. First, China shows a higher degree of IIT relation with Japan vis-à-vis Malaysia. Second, to the extent of w...

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Main Authors: Mohammad Affendy, Arip, Lau, Sim Yee, Satoru, Madono
Format: Article
Language:English
Published: University of Malaya 2011
Subjects:
Online Access:http://ir.unimas.my/id/eprint/17938/
http://ir.unimas.my/id/eprint/17938/1/An%20Analysis.pdf
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author Mohammad Affendy, Arip
Lau, Sim Yee
Satoru, Madono
author_facet Mohammad Affendy, Arip
Lau, Sim Yee
Satoru, Madono
author_sort Mohammad Affendy, Arip
building UNIMAS Institutional Repository
collection Online Access
description This paper investigates the bilateral trade pattern between Japan,Malaysia and China (JMC) using the intra-industry trade (IIT) index analysis. Our empirical findings revealed the following. First, China shows a higher degree of IIT relation with Japan vis-à-vis Malaysia. Second, to the extent of whether rapid manufacturing development in China is affecting Malaysia’s export to Japan, our analytical evidence demonstrates that the degree of overlapping exports to Japan by Malaysia and China has increased over time. Although this trend appears to be an indication of increasing competition from China in relation to Malaysia’s products in the Japanese market, our empirical evidence – detailing the degree of product similarity between Malaysia and China using the unit value (UV) measurement – shows that both countries’ exports actually comprise mainly vertically differentiated products or different segments of the market in Japan. Nevertheless, the results also reveal that, compared to Malaysia, China is rapidly increasing its export share in horizontally differentiated products or similar market segments.
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spelling unimas-179382022-03-22T07:40:17Z http://ir.unimas.my/id/eprint/17938/ An Analysis of Intra-Industry Trade between Japan, Malaysia and China Mohammad Affendy, Arip Lau, Sim Yee Satoru, Madono H Social Sciences (General) This paper investigates the bilateral trade pattern between Japan,Malaysia and China (JMC) using the intra-industry trade (IIT) index analysis. Our empirical findings revealed the following. First, China shows a higher degree of IIT relation with Japan vis-à-vis Malaysia. Second, to the extent of whether rapid manufacturing development in China is affecting Malaysia’s export to Japan, our analytical evidence demonstrates that the degree of overlapping exports to Japan by Malaysia and China has increased over time. Although this trend appears to be an indication of increasing competition from China in relation to Malaysia’s products in the Japanese market, our empirical evidence – detailing the degree of product similarity between Malaysia and China using the unit value (UV) measurement – shows that both countries’ exports actually comprise mainly vertically differentiated products or different segments of the market in Japan. Nevertheless, the results also reveal that, compared to Malaysia, China is rapidly increasing its export share in horizontally differentiated products or similar market segments. University of Malaya 2011-04 Article PeerReviewed text en http://ir.unimas.my/id/eprint/17938/1/An%20Analysis.pdf Mohammad Affendy, Arip and Lau, Sim Yee and Satoru, Madono (2011) An Analysis of Intra-Industry Trade between Japan, Malaysia and China. International Journal of Institutions and Economies, 3 (1). pp. 1-30. ISSN 2232-1632 http://ijie.um.edu.my
spellingShingle H Social Sciences (General)
Mohammad Affendy, Arip
Lau, Sim Yee
Satoru, Madono
An Analysis of Intra-Industry Trade between Japan, Malaysia and China
title An Analysis of Intra-Industry Trade between Japan, Malaysia and China
title_full An Analysis of Intra-Industry Trade between Japan, Malaysia and China
title_fullStr An Analysis of Intra-Industry Trade between Japan, Malaysia and China
title_full_unstemmed An Analysis of Intra-Industry Trade between Japan, Malaysia and China
title_short An Analysis of Intra-Industry Trade between Japan, Malaysia and China
title_sort analysis of intra-industry trade between japan, malaysia and china
topic H Social Sciences (General)
url http://ir.unimas.my/id/eprint/17938/
http://ir.unimas.my/id/eprint/17938/
http://ir.unimas.my/id/eprint/17938/1/An%20Analysis.pdf