Universidad de Granada Digibug
 

Repositorio Institucional de la Universidad de Granada >
1.-Investigación >
Departamentos, Grupos de Investigación e Institutos >
Departamento de Teoría e Historia Económica >
DTHE - Informes >

Please use this identifier to cite or link to this item: http://hdl.handle.net/10481/31493

Title: Do endowments matter for vertical intra-industry trade with emergent countries? Empirical evidence for Spain
Authors: Milgram Baleix, Juliette
Moro-Egido, Ana
Issue Date: 2006
Abstract: In this paper, we study the nature of Spanish intra-industry trade and find that intra-industry trade with CEEC, Asian and Mediterranean countries has increased considerably since the middle of the Nineties. The second aim of the paper is to study if the comparative advantage argument also explains the vertical intra-industry trade between countries with different income levels. To this end we build physical, technological and human capital stocks for a large sample of countries. Results obtained with the panel techniques support the idea of a neo Ricardian explanation of VIIT rather than the neo-Hecksher-Ohlin explanation for intra-industry trade with emergent countries. Furthermore, our results suggest that the variables considered, mostly country-specific better explain vertical intra-industry trade than horizontal intra-industry trade. Results obtained with the Heckman method support the idea that IIT is more likely to occur with emergent countries with higher i ncome per capita and with OECD countries that have a more similar level of income to that of Spain. Differences in endowments play an important role to determine the volume of IIT rather than the probability of IIT to occur. An aditional contribution of this paper is to demonstrate that panel approach allows for more robust conclusions than OLS estimations when explaining intra-industry trade. The Heckman procedure to account for the zero flows also represents a major improvement respect to the standard approach.
Sponsorship: The authors gratefully acknowledge the financial support from the CICYT Project SEJ2005-001163 (Spanish Ministry of Education and FEDER).
Publisher: Universidad de Granada. Departamento de Teoría e Historia Económica
Series/Report no.: The Papers;06/10
Keywords: Intra-industry trade
Comparative advantage
URI: http://hdl.handle.net/10481/31493
Rights : Creative Commons Attribution-NonCommercial-NoDerivs 3.0 License
Citation: Milgram, J.; Moro-Egido, A. Do endowments matter for vertical intra-industry trade with emergent countries? Empirical evidence for SpainUniversidad de Granada. Departamento de Teoría e Historia Económica (2006). (The Papers; 06/10). [http://hdl.handle.net/10481/31493]
Appears in Collections:DTHE - Informes

Files in This Item:

File Description SizeFormat
thepapers06_10.pdf400.04 kBAdobe PDFView/Open
Recommend this item

This item is licensed under a Creative Commons License
Creative Commons

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.

 

Valid XHTML 1.0! OpenAire compliant DSpace Software Copyright © 2002-2007 MIT and Hewlett-Packard - Feedback

© Universidad de Granada