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The role of comparative advantage in trade within industries: A panel data approach for the European Union

The role of comparative advantage in trade within industries: A panel data approach for the European Union,10.1007/BF02707746,Review of World Economic

The role of comparative advantage in trade within industries: A panel data approach for the European Union   (Citations: 18)
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The Role of Comparative Advantage in Trade within Industries: A Panel Data Approach for the European Union. — A large share of EU member states trade is intra-industry trade (IIT) in the period 1985-1996; in particular, IIT is based on products differentiated in quality (vertical IIT). Moreover, exports from southern countries are located mainly at the lower end of the price-quality spectrum, whereas those countries with higher per capita incomes are located at the higher end. According to the vertical IIT models, we hypothesize that commercial specialization of members states over the quality spectrum within industries is explained by differences in technological, physical and human capital. The results show that comparative advantage is an important driver of the pattern of European trade within industries.
Journal: Review of World Economics - REV WORLD ECON , vol. 138, no. 2, pp. 291-316, 2002
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    • ...(2002a, b), Mora (2002) and Crespo and Fontoura (2004), Jensen and Lu ¨thje (2008)...
    • ...Durkin and Krygier (2000), Martı ´n-Montaner and Rı´os (2002), Mora (2002), Crespo and Fontoura (2004) and Zhang et al. (2005)...
    • ...When we turn to the empirical evidence of the effect of differences in factor endowments on VIIT, Martı´n-Montaner and Rı´os (2002) and Mora (2002) use the three above mentioned variables as a proxy of capital: physical capital, technological capital and human capital...
    • ...relationship between VIIT and the three variables, whereas Mora (2002) finds a negative relationship between VIIT and physical capital...
    • ...4 More precisely, Mora (2002) investigates high-quality VIIT...
    • ...In order to evaluate the robustness of the results, Greenaway et al. (1995), Aturupane et al. (1999), Durkin and Krygier (2000), Gullstrand (2002a), Mora (2002) and Crespo and Fontoura (2004) conduct a regression analysis for both dispersion factors and find that the results are not particularly sensitive as regards the chosen dispersion factor...
    • ...As in Martı ´n-Montaner and Rı´os (2002) and Mora (2002), we decompose capital into three variables: physical capital, technological capital and human capital...
    • ...Barro and Lee (1993), Mora (2002) and Gullstrand (2002a, b). Data is from Eurostat’s Internet database for the period from 1996 to 2005...
    • ...Coe and Helpman (1995) and Mora (2002), and is calculated by the use of the perpetual inventory method as follows...
    • ...assuming d to be 5 and 10% with similar results (Coe and Helpman 1995: pp 883‐886). Mora (2002) assumes 15% too...
    • ...Mora (2002) and Crespo and Fontoura (2004) assume 7% too...

    Lars Jensenet al. Driving forces of vertical intra-industry trade in Europe 1996–2005

    • ...It is assumed that VIIT has two components, high-quality (HQVIIT) and low-quality (LQVIIT) (Díaz Mora 2002)...

    Darja Majkovičet al. Development of New Members' EU Trade: Evidence from the Slovenian Agri...

    • ...(1997), Brülhart and Hine (1999) and Díaz Mora (2002), referred to the years 1980–1994, 1961–1992 and 1985–1996 respectively, show the reinforced importance of intra-industry trade flows between the economies belonging to the European Union...

    Elisa Álvarez Lópezet al. Specialization and openness to foreign trade in the European Union

    • ...11 See, for instance, Blanes and Martin (2000) and Mora (2002)...
    • ...The 6-digit level is considered a rather refined product group for minimizing this bias, as proposed for instance by Gullstrand (2002) or Mora (2002)...

    Nuno Crespoet al. Intra-industry trade by types: What can we learn from Portuguese data?

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