Intra-Industry Trade and Industry-Specific Determinants in Slovenia: Manual Labour as Comparative Advantage

Stanislav Cernosa

Eastern European Economics, 2009, vol. 47, issue 3, 84-99

Abstract: This paper tests the industry-specific hypothesis for Slovenia as a former party to the Central European Free Trade Agreement. The values of horizontal and vertical intra-industry trade (IIT) of the ninety chosen manufacturing activities represent the dependent variable, whereas product differentiation, economies of scale, market structure, and multinational enterprises represent independent variables. The results obtained from panel techniques find strong support for the effects of industry-specific determinants of vertical IIT. Manual labor intensity in production is a comparative advantage, whereas capital intensity in production is a disadvantage.

Date: 2009
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