We explore the general opportunities of China and Asia within the intercontinental fragmentation of automobile manufacturing by examining disaggregated trade flows, while distinguishing between final and advanced items. The scale and composition of trade has significantly relocated in favor of trade of elements over the past decade, but major differences exist between your two countries; China is a net car importer, while India is a net vehicle exporter. We look for proof of the increasing importance of two-way trade-in vertically classified items, suggesting that China and Asia have become more active participants into the straight division of work in automotive production.
► Increasing significance of elements trade (vertical two-way trade) compared to last products trade. ► Significant differences in the opportunities of Asia and Asia into the international unit of work. ► China has actually an important share of car component exports with higher device prices than imports. ► India is in keeping with quality ladder hypothesis: exports have lower device rates than imports.
- Straight intra-industry trade;
- Automotive sector