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GMM Estimator: An Application to Intraindustry Trade
Author
Source
Journal of Applied Mathematics
Issue
Vol. 2012, Issue 2012 (31 Dec. 2012), pp.1-12, 12 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2012-05-09
Country of Publication
Egypt
No. of Pages
12
Main Subjects
Abstract EN
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.
American Psychological Association (APA)
Leitão, Nuno Carlos. 2012. GMM Estimator: An Application to Intraindustry Trade. Journal of Applied Mathematics،Vol. 2012, no. 2012, pp.1-12.
https://search.emarefa.net/detail/BIM-993773
Modern Language Association (MLA)
Leitão, Nuno Carlos. GMM Estimator: An Application to Intraindustry Trade. Journal of Applied Mathematics No. 2012 (2012), pp.1-12.
https://search.emarefa.net/detail/BIM-993773
American Medical Association (AMA)
Leitão, Nuno Carlos. GMM Estimator: An Application to Intraindustry Trade. Journal of Applied Mathematics. 2012. Vol. 2012, no. 2012, pp.1-12.
https://search.emarefa.net/detail/BIM-993773
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-993773