“Another Empirical Look at the Theory of Overlapping Demands - Un altro sguardo empirico alla teoria delle overlapping demands

Dharmendra Dhakal (), Gyan Pradhan and Kamal Upadhyaya
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Gyan Pradhan: Department of Economics, Eastern Kentucky University, Postal: 521 Lancaster Avenue - Richmond, KY 40475, USA, http://www.eku.edu/

Economia Internazionale / International Economics, 2011, vol. 64, issue 1, 103-113

Abstract: Linder’s theory of overlapping demands suggests that international trade in manufactured goods will be stronger between countries with similar per capita income levels. In this paper, we test the Linder hypothesis for five East Asian countries using panel data for five years. In addition to including bilateral trade data for these countries, we include their bilateral trade data with their other major trading partners. A modified gravity model is developed for this purpose. The model is first estimated for each year in the sample. In addition, a panel data set is constructed and estimated using a fixed-effects estimator. The overall results of our estimations are quite robust and do not provide support for Linder’s hypothesis. - Secondo la teoria delle overlapping demands di Linder, il commercio internazionale di beni manufatti risulterebbe essere maggiore tra i paesi che presentano livelli di reddito procapite simili. In questo studio tale teoria viene applicata a cinque paesi dell’est asiatico utilizzando dati panel per un periodo di cinque anni. Oltre a considerare i dati del commercio bilaterale tra questi paesi, sono stati inclusi anche i dati del commercio bilaterale con gli altri principali partner commerciali. A questo proposito è stato sviluppato un modello gravitazionale modificato, stimato prima per ogni anno del campione. È stato realizzato un panel data set attraverso un fixed effect estimator. Le stime ottenute risultano nel complesso robuste e non forniscono evidenze a sostegno dell’ipotesi di Linder.

Keywords: Linder Hypothesis; East Asian Countries; Panel Data (search for similar items in EconPapers)
JEL-codes: F10 (search for similar items in EconPapers)
Date: 2011
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