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Intra-industry trade in Romania: analysis of the automobile parts and accessories sector

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  • Marius-Razvan Surugiu
  • Camelia Surugiu

Abstract

This paper examines the determinants of intra-industry trade (IIT) in the Romanian automobile parts and accessories sector. The trade in this sector between Romania and 12 countries (Austria, Belgium, Bulgaria, Croatia, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Poland and Turkey) was examined. These countries were chosen taking into consideration the trade volume with Romania, a pooled ordinary least squares model being created for the period 1995–2008. The results showed a direct influence on IIT from economic dimension, physical endowments and distance. The higher and lower gross domestic product values between Romania and other country have a negative sign, even if, for the second variable, we expected a positive sign.

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Bibliographic Info

Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Economics and Business Research.

Volume (Year): 4 (2012)
Issue (Month): 1/2 ()
Pages: 166-179

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Handle: RePEc:ids:ijecbr:v:4:y:2012:i:1/2:p:166-179

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Web page: http://www.inderscience.com/browse/index.php?journalID==310

Related research

Keywords: economic dimensions; physical endowments; Romania; automobile parts; automobile accessories; trade determinants; Austria; Belgium; Bulgaria; Croatia; Czech Republic; France; German; Hungary; Italy; Netherlands; Holland; Poland; Turkey; trade volumes; pooled least squares models; ordinary least squares models; gross domestic product; GDP values; geographic distance; economics; business research; intra-industry trade.;

References

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  1. Daniel Daianu & Radu Vranceanu, 2001. "Subduing High Inflation in Romania. How to Better Monetary and Exchange Rate Mechanisms?," William Davidson Institute Working Papers Series 402, William Davidson Institute at the University of Michigan.
  2. Ando, Mitsuyo, 2006. "Fragmentation and vertical intra-industry trade in East Asia," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 257-281, December.
  3. Diana Korka, 2006. "The Evolution of Foreign Trade and Comparative Advantage in Transition Economies," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 9(19), pages 53-69, March.
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  5. Aturupane, Chonira & Djankov, Simeon & Hoekman, Bernard, 1997. "Determinants of Intra-Industry Trade between East and West Europe," CEPR Discussion Papers 1721, C.E.P.R. Discussion Papers.
  6. Olteanu, Dan, 2009. "Technological Specialisation of Production and Export in Europe," Working Papers of National Institute of Economic Research 090108, National Institute of Economic Research.
  7. Yushi Yoshida & Nuno Carlos Leitão & Horácio Faustino, 2009. "Vertical Intra-Industry Trade and Foreign Direct Investment between Japan and European Countries," Atlantic Economic Journal, International Atlantic Economic Society, vol. 37(4), pages 351-365, December.
  8. Lucia Paliu Popa, 2009. "Trends of the Romanian foreign trade in the transition period," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 56, pages 442-457, November.
  9. Nuno Carlos Leitão & Horácio C. Faustino & Yushi Yoshida, 2010. "Fragmentation, Vertical Intra-Industry Trade, and Automobile components," Economics Bulletin, AccessEcon, vol. 30(2), pages 1006-1015.
  10. David Greenaway & Robert Hine & Chris Milner, 1994. "Country-specific factors and the pattern of horizontal and vertical intra-industry trade in the UK," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(1), pages 77-100, March.
  11. Rault, Christophe & Sova, Robert & Sova, Anamaria, 2007. "Modeling International Trade Flows Between Eastern European Countries and OECD Countries," IZA Discussion Papers 2851, Institute for the Study of Labor (IZA).
  12. Horácio Faustino & Nuno Leitão, 2007. "Intra-Industry Trade: A Static and Dynamic Panel Data Analysis," International Advances in Economic Research, Springer, vol. 13(3), pages 313-333, August.
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