A Product-Quality View of the Linder Hypothesis

Juan Hallak

The Review of Economics and Statistics, 2010, vol. 92, issue 3, 453-466

Abstract: The Linder hypothesis has attracted substantial empirical research over decades. However, the evidence has failed to provide consistent support for it. This paper explains the failure. Building a theoretical framework in which, as in Linder's theory, product quality plays the central role, I show that the Linder hypothesis is formally derived but holds only when formulated as a sector-level prediction. This prediction is then estimated using a sample of 64 countries in 1995. The results support the sectoral Linder hypothesis: controlling for the effect of intersectoral determinants of trade, countries of similar income per capita trade more intensely with one another. © 2010 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (151)

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/REST_a_00001 link to full text (application/pdf)

Related works:
Working Paper: A Product-Quality View of the Linder Hypothesis (2006)
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: https://EconPapers.repec.org/RePEc:tpr:restat:v:92:y:2010:i:3:p:453-466

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().