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Please use this identifier to cite or link to this item: http://hdl.handle.net/10400.5/2596

Title: Country-Specific Determinants of Intra-Industry Trade in Portugal
Authors: Faustino, Horácio C.
Leitão, Nuno Carlos
Keywords: intra-industry trade
horizontal intra-industry trade
vertical intra-industry trade
Linder hypothesis
dynamic panel data
Issue Date: 2007
Publisher: ISEG – Departamento de Economia
Citation: Faustino, Horácio C. e Nuno Carlos Leitão. 2007. "Country-Specific Determinants of Intra-Industry Trade in Portugal". Instituto Superior de Economia e Gestão - DE Working papers nº 27-2007/DE/SOCIUS
Series/Report no.: DE Working papers;nº 27-2007/DE/SOCIUS
Abstract: Based on the theoretical models of Helpman and Krugman (1985), Falvey and Kierzkowski (1987) and Flam and Helpman (1987) and on the empirical studies of Greenaway, Hine and Milner (1994) and Hummels and Levinsohn (1995), we use a static and dynamic panel data approach to test the country-specific determinants of Portuguese intra-industry trade (IIT). We include income variables together with supply-side variables in order to test the demand similarity and factor endowments difference hypotheses. The results suggest that the Linder hypothesis is confirmed and that differences in income levels have a positive (negative) effect on vertical IIT (horizontal IIT and IIT). However, our findings only partially confirm Helpman and Krugman's theoretical predictions.
URI: http://hdl.handle.net/10400.5/2596
ISSN: 0874-4548
Publisher version: https://aquila1.iseg.utl.pt/aquila/getFile.do?method=getFile&fileId=26498
Appears in Collections:SOCIUS - Documentos de Trabalho / SOCIUS - Working Papers
DE - Documentos de trabalho / Working Papers

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