GMM Estimator: An Application to Intraindustry Trade
This paper investigates the determinants of intraindustry trade (IIT), horizontal IIT (HIIT), and Vertical IIT (VIIT) in the automobile industry in Portugal. The trade in this sector between Portugal and the European Union (EU-27) was examined, between 1995 and 2008, using a dynamic panel data. We a...
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| Format: | Article |
| Language: | English |
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Wiley
2012-01-01
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| Series: | Journal of Applied Mathematics |
| Online Access: | http://dx.doi.org/10.1155/2012/857824 |
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| _version_ | 1832554426723729408 |
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| author | Nuno Carlos Leitão |
| author_facet | Nuno Carlos Leitão |
| author_sort | Nuno Carlos Leitão |
| collection | DOAJ |
| description | This paper investigates the determinants of intraindustry trade (IIT), horizontal IIT (HIIT), and Vertical IIT (VIIT) in the automobile industry in Portugal. The trade in this sector between Portugal and the European Union (EU-27) was examined, between 1995 and 2008, using a dynamic panel data. We apply the GMM system to solve the problems of serial correlation and the endogeneity of some explanatory variables. The findings are consistent with the literature. The difference between per capita incomes and factor endowments present a positive sign. These results are according to Heckscher-Ohlin predictions. The economic dimension has a positive impact on trade. A negative effect of the distance on bilateral trade was expected and the results confirm this, underlining the importance of neighbour partnerships for all trade. |
| format | Article |
| id | doaj-art-76a715ff211a40a48aeb669f4f6ed006 |
| institution | Kabale University |
| issn | 1110-757X 1687-0042 |
| language | English |
| publishDate | 2012-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Journal of Applied Mathematics |
| spelling | doaj-art-76a715ff211a40a48aeb669f4f6ed0062025-02-03T05:51:28ZengWileyJournal of Applied Mathematics1110-757X1687-00422012-01-01201210.1155/2012/857824857824GMM Estimator: An Application to Intraindustry TradeNuno Carlos Leitão0Polytechnic Institute of Santarém and CEFAGE, Évora University, Complexo Andaluz Apt. 295, 2001-904 Santarém, PortugalThis paper investigates the determinants of intraindustry trade (IIT), horizontal IIT (HIIT), and Vertical IIT (VIIT) in the automobile industry in Portugal. The trade in this sector between Portugal and the European Union (EU-27) was examined, between 1995 and 2008, using a dynamic panel data. We apply the GMM system to solve the problems of serial correlation and the endogeneity of some explanatory variables. The findings are consistent with the literature. The difference between per capita incomes and factor endowments present a positive sign. These results are according to Heckscher-Ohlin predictions. The economic dimension has a positive impact on trade. A negative effect of the distance on bilateral trade was expected and the results confirm this, underlining the importance of neighbour partnerships for all trade.http://dx.doi.org/10.1155/2012/857824 |
| spellingShingle | Nuno Carlos Leitão GMM Estimator: An Application to Intraindustry Trade Journal of Applied Mathematics |
| title | GMM Estimator: An Application to Intraindustry Trade |
| title_full | GMM Estimator: An Application to Intraindustry Trade |
| title_fullStr | GMM Estimator: An Application to Intraindustry Trade |
| title_full_unstemmed | GMM Estimator: An Application to Intraindustry Trade |
| title_short | GMM Estimator: An Application to Intraindustry Trade |
| title_sort | gmm estimator an application to intraindustry trade |
| url | http://dx.doi.org/10.1155/2012/857824 |
| work_keys_str_mv | AT nunocarlosleitao gmmestimatoranapplicationtointraindustrytrade |