Measuring Vertical And Horizontal Intra-Industry Trade:the Case Of Mexico And China

The purpose of this study is to.measure and analyze the extent of vertical and horizontal intra-industry trade between Mexico and China in seven sectors over a five-year period,from 2012 to 2016,using disaggregated trade data at the SITC three digit level;and to identify in what sectors IIT is rmainly concentrated.Lastly,this paper aims to disentangle trade into:inter-industry trade,horizontal intra-industry trade,low quality vertical ITT(low ITTV)and high quality vertical ITT(high-ITTV).One of the main findings is that there is relatively low bilateral intra-industry trade between Mexico and China.Furthermore,the results showed that vertical ?T took predominance over horizontal IIT in all sectors.When further disentangling vertical IIT,the results demonstrated that it was high-ITTV that prevailed over low-ITTV.In this type of trade,China is mainly exporting low quality goods to Mexico.