Year: 2009
Type: article
Abstract: This manuscript examines the determinants of intra-industry trade (IIT) in the automobile component sector in Portugal. We have examined the Portuguese trade in this sector between European Union (EU-27), the BRIC (Brazil, Russia, India and China), and United States between 1995 and 2006. Using a panel data approach, the results show a negative correlation between endowments and IIT. These results indicate that IIT occurs more frequently among countries that are similar in terms of factor endowments. We also introduce economic and cultural dimensions; these proxies confirm the positive effects of IIT. Our results also confirm the hypothesis that trade increases if the transportation costs decrease.
Authors: Nuno Carlos Leitão, Horácio C. Faustino
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W309008326