FDI and intra-industry trade in the automotive industry in the new EU Member States

Łukasz Ambroziak

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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Year of publication:	2016
Authors:	Ambroziak, Łukasz
Published in:	International journal of management and economics. - Warsaw : De Gruyter Poland, ISSN 2543-5361, ZDB-ID 2824518-0. - Vol. 52.2016, 1, p. 23-42
Subject:	foreign direct investment (FDI) \| intra-industry trade (IIT) \| automotive industry \| new EU Member States \| Auslandsinvestition \| Foreign investment \| Intraindustrieller Handel \| Intra-industry trade \| Kfz-Industrie \| Automotive industry \| EU-Mitgliedschaft \| EU membership \| EU-Staaten \| EU countries

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Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Other identifiers:	10.1515/ijme-2016-0025 [DOI]
Classification:	F14 - Country and Industry Studies of Trade ; F15 - Economic Integration
Source:	ECONIS - Online Catalogue of the ZBW

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