FDI and Intra-industry Trade in the Automotive Industry in the New EU Member States

This paper investigates the extent to which foreign direct investment (FDI) influenced intra-industry trade (IIT) in automotive products in six New EU Member States (the Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia) in the 1995–2014 period. Changes in IIT intensity are analysed us...

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Main Author: Ambroziak Łukasz
Format: Article
Language:English
Published: Sciendo 2016-12-01
Series:International Journal of Management and Economics
Subjects:
Online Access:https://doi.org/10.1515/ijme-2016-0025
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author Ambroziak Łukasz
author_facet Ambroziak Łukasz
author_sort Ambroziak Łukasz
collection DOAJ
description This paper investigates the extent to which foreign direct investment (FDI) influenced intra-industry trade (IIT) in automotive products in six New EU Member States (the Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia) in the 1995–2014 period. Changes in IIT intensity are analysed using the Grubel-Lloyd indices. To examine the IIT pattern, IIT indices are divided into two types of trade: IIT in vertically differentiated products (low and high quality VIIT) and IIT in horizontally differentiated products (HIIT). The research indicates that IIT in automotive products allowed manufacturers and consumers from the new EU Member States to benefit more from international trade. FDI inflow to the automotive sector of the NMS has been a key factor shaping IIT in automotive products.
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spelling doaj.art-5a123f98d6dc4a378d33ac4872987d132022-12-21T23:28:40ZengSciendoInternational Journal of Management and Economics2299-97012016-12-01521234210.1515/ijme-2016-0025ijme-2016-0025FDI and Intra-industry Trade in the Automotive Industry in the New EU Member StatesAmbroziak Łukasz0Warsaw School of Economics, Warsaw, PolandThis paper investigates the extent to which foreign direct investment (FDI) influenced intra-industry trade (IIT) in automotive products in six New EU Member States (the Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia) in the 1995–2014 period. Changes in IIT intensity are analysed using the Grubel-Lloyd indices. To examine the IIT pattern, IIT indices are divided into two types of trade: IIT in vertically differentiated products (low and high quality VIIT) and IIT in horizontally differentiated products (HIIT). The research indicates that IIT in automotive products allowed manufacturers and consumers from the new EU Member States to benefit more from international trade. FDI inflow to the automotive sector of the NMS has been a key factor shaping IIT in automotive products.https://doi.org/10.1515/ijme-2016-0025foreign direct investment (fdi)intra-industry trade (iit)automotive industrynew eu member statesf14f15
spellingShingle Ambroziak Łukasz
FDI and Intra-industry Trade in the Automotive Industry in the New EU Member States
International Journal of Management and Economics
foreign direct investment (fdi)
intra-industry trade (iit)
automotive industry
new eu member states
f14
f15
title FDI and Intra-industry Trade in the Automotive Industry in the New EU Member States
title_full FDI and Intra-industry Trade in the Automotive Industry in the New EU Member States
title_fullStr FDI and Intra-industry Trade in the Automotive Industry in the New EU Member States
title_full_unstemmed FDI and Intra-industry Trade in the Automotive Industry in the New EU Member States
title_short FDI and Intra-industry Trade in the Automotive Industry in the New EU Member States
title_sort fdi and intra industry trade in the automotive industry in the new eu member states
topic foreign direct investment (fdi)
intra-industry trade (iit)
automotive industry
new eu member states
f14
f15
url https://doi.org/10.1515/ijme-2016-0025
work_keys_str_mv AT ambroziakłukasz fdiandintraindustrytradeintheautomotiveindustryintheneweumemberstates