Country Specific Effects Of Differences In Factor Endowments On Intra-Industry Trade-Illustrated By The Danish Case
This article throws light on the subject whether there are country specific effects of differences in factor endowments on intra-industry trade. We conduct an econometric analysis of the Danish intra-industry trade in both horizontally and vertically differentiated products to examine whether determ...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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People & Global Business Association (P&GBA)
2008-03-01
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| Series: | Global Business and Finance Review |
| Subjects: | |
| Online Access: | http://www.gbfrjournal.org/pds/journal/thesis/20150622165330-NM1B9.pdf |
| Summary: | This article throws light on the subject whether there are country specific effects of differences in factor endowments on intra-industry trade. We conduct an econometric analysis of the Danish intra-industry trade in both horizontally and vertically differentiated products to examine whether determinants based on trade theory can explain this trade. Basically, we find a relationship between differences in factor endowment between trade partners on one side and the two types of intra-industry trade on the other. As regards horizontally intra-industry trade, the effect of differences in physical capital seems not to be country specific. As regards vertically intra-industry trade, the relationship is not simple and a country specific dependency of the effect of differences in endowment of technological capital is pointed out. |
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| ISSN: | 1088-6931 2384-1648 |