Intra-industry trade with emergent countries: what can we learn from spanish data?

Juliette Milgram-Baleix () and Ana Isabel Moro-Egido ()
Additional contact information
Juliette Milgram-Baleix: Granada University
Authors registered in the RePEc Author Service: Juliette Milgram ()

Economics Bulletin, 2005, vol. 6, issue 12, pages 1-17

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 different income countries. According to OLS estimations, technological differences increase DVIIT while physical capital differences lead to its decrease. The results obtained applying the Heckman method support the idea that differences in physical capital reduce the probability of IIT to occur but the level of vertical and horizontal IIT is more accurately explained by the proximity of partners, similarity in development level and size of market than by the differences in physical capital endowments. The variables considered, mostly country-specific, do have the same impact on vertical and horizontal IIT with emergent countries.

Keywords: Comparative advantage; Determinants of Horizontal Intra-Industry Trade; Determinants of Vertical Intra-Industry Trade; Emergent countries; Heckman's method; Intra-Industry Trade; Spain (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2005-08-02
View list of references

Downloads: (external link)
http://economicsbulletin.vanderbilt.edu/2005/volume6/EB-05F10004A.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ebl:ecbull:v:6:y:2005:i:12:p:1-17

Access Statistics for this article

More articles in Economics Bulletin from Economics Bulletin
Address: Economics Bulletin, Department of Economics, 414 Calhoun Hall, Vanderbilt University, Nashville TN 37235, USA
Series data maintained by John Conley ().