[STBI-10-08-2017] Investigating Agricultural Intra-Industry Trade: A Comprehensive Case Study in Vietnam

Author: Hoang Van Viet

School of Economics. University of Economics HCM City

Email: viet.hoang@ueh.edu.vn,

Date: 11:00 August 10th, 2017

Venue: H001, 1A Hoang Dieu Street, Ward 10, Phu Nhuan District

Abstract: 

Intra-industry trade (IIT) and trade dynamics play rising roles in the international economic literature recently. This article investigates Vietnam’s agricultural IIT defined by GLI in the world market and the dynamics of GLI indicators in five ways: MIIT, OLS, Markov matrix, time series, and piecewise to understand economic changes from different angles. The paper finally tests the relationship between IIT and trade specialization. The results indicate that Vietnam has the inter-industry trade in 42 agricultural sectors while it has the IIT in only 19 sectors. The country’s agricultural IIT pattern is convergent and the degrees of the IIT are relatively mobile over time. Vietnam obtains the increasing IIT trends in 21 agricultural sectors while it has the decreasing IIT trends in 13 sectors. The event in 2008 results in 14 agricultural IIT breakpoints. The study, remarkably, confirms that IIT and trade specialization are inversely correlated and this empirical result is consistent with international trade theory.

JEL: F10, F14, Q17

Keywords: Vietnam, agriculture, intra-industry trade, dynamics, specialization, consistency

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