<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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.</p></abstract>

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.

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

International Journal of Management and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

This paper investigates the extent to which foreign direct investment (FDI) influenced intra-industry trade (IIT) in automotive products in six New EU Member...

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

Published Online: Jan 23, 2017

Page range: 23 - 42

DOI: https://doi.org/10.1515/ijme-2016-0025

Keywords
foreign direct investment (FDI), intra-industry trade (IIT), automotive industry, new EU Member States

© 2016 Łukasz Ambroziak, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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

Published Online: Jan 23, 2017

Page range: 23 - 42

DOI: https://doi.org/10.1515/ijme-2016-0025

Keywordsforeign direct investment (FDI), intra-industry trade (IIT), automotive industry, new EU Member States

© 2016 Łukasz Ambroziak, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
foreign direct investment (FDI), intra-industry trade (IIT), automotive industry, new EU Member States