Economic Development and Intra-industry Trade in the Republic of Korea

Abstract

Vertical intra-industry trade dominates horizontal intra-industry trade in Korea.A time series analysis on both these types of intra-industry trade yields the following: (1) vertical intra industry trade was caused by the rapid economic development that the Korean economy experienced in the past thirty years and (2) horizontal intra-industry trade was more random in nature caused only by the aggregate volume of trade.

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