An Empirical Analysis of the Linder
AbstractThis paper presents empirical evidence in support of the Linder theory of international trade for three of the South Asian countries, Bangladesh, India, and Pakistan. This finding implies that these countries trade more intensively with countries of other regions, which may have similar per capita income levels, as predicted by Linder in his hypothesis. The contribution of this research is threefold: first, there is new information on the Linder hypothesis by focusing on South Asian countries; second, this is one of very few analyses to capture both time-series and cross-section elements of the trade relationship by employing a panel data set; third, the empirical methodology used in this analysis corrects a major shortcoming in the existing literature by using a censored dependent variable in estimation.
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Bibliographic InfoArticle provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.
Volume (Year): 44 (2005)
Issue (Month): 3 ()
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- Thomas Kennedy & Richard McHugh, 1983. "Taste similarity and trade intensity: A Test of the linder hypothesis for United States exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 119(1), pages 84-96, March.
- Linnemann, H. & Beers, C.P., 1987. "Measures of export-import similarity, and the Linder hypothesis once again," Serie Research Memoranda 0030, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- Thursby, Jerry G & Thursby, Marie C, 1987. "Bilateral Trade Flows, the Linder Hypothesis, and Exchange Risk," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 488-95, August.
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