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Trade types with Developed and Developing Countries What can we learn from Spanish data?

Juliette Milgram Baleix () and Ana Moro-Egido ()

No 05/08, ThE Papers from Department of Economic Theory and Economic History of the University of Granada.

Abstract: In this paper, we investigate 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 vertical intra-industry trade between different income countries. According to OLS estimations, technological differences do increase DVIIT while physical capital differences decreases it. Results obtained applying 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 better explained by the proximity of partners, the similarity in development level and size of market than by differences in physical capital endowments. The variables considered, mostly country-specific do have the same impact on vertical and horizontal IIT with emergent countries.

JEL-codes: F13 F17 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2005-06-01
New Economics Papers: this item is included in nep-eec and nep-int
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http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers05_08.pdf (application/pdf)

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