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International trade and developing countries: an empirical investigation of the Linder hypothesis

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  • Michael McPherson
  • Michael Redfearn
  • Margie Tieslau
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    Abstract

    This paper presents empirical evidence in support of the Linder hypothesis for five of the six East African developing countries studied here: Ethiopia, Kenya, Rwanda, Sudan and Uganda. This finding implies that these countries trade more intensively with others who have similar per capita income levels, as predicted by Linder. The contributions of this research are three-fold. First, new information is provided on the Linder hypothesis by focusing on developing 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 the analysis corrects a major shortcoming in the existing literature by using a censored dependent variable in estimation.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122575
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 33 (2001)
    Issue (Month): 5 ()
    Pages: 649-657

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    Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:649-657

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    Cited by:
    1. Juan Carlos Hallak, 2010. "A Product-Quality View of the Linder Hypothesis," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 453-466, August.
    2. Wongsurawat, Winai, 2007. "Determinants of public reactions to Concorde test flights at the John F. Kennedy International Airport," Journal of Air Transport Management, Elsevier, vol. 13(6), pages 371-375.
    3. Xuepeng Liu, 2009. "Trade and income convergence: Sorting out the causality," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 18(1), pages 169-195.
    4. Kiyong Keum, 2010. "Tourism flows and trade theory: a panel data analysis with the gravity model," The Annals of Regional Science, Springer, vol. 44(3), pages 541-557, June.
    5. Juan Carlos Hallak, 2004. "Product Quality, Linder, and the Direction of Trade," NBER Working Papers 10877, National Bureau of Economic Research, Inc.
    6. Donny Tang, 2005. "Effects of the Regional Trading Arrangements on Trade: Evidence from the NAFTA, ANZCER and ASEAN Countries, 1989 - 2000," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 14(2), pages 241-265.
    7. Constantina Kottaridi, 2005. "The 'core-periphery' pattern of FDI-led growth and production structure in the EU," Applied Economics, Taylor & Francis Journals, vol. 37(1), pages 99-113.
    8. Hallak, Juan Carlos, 2006. "Product quality and the direction of trade," Journal of International Economics, Elsevier, vol. 68(1), pages 238-265, January.
    9. Haq, Zahoor Ul & Meilke, Karl D., 2008. "Differentiated Agri-Food Product Trade and the Linder Effect," Working Papers 46629, Canadian Agricultural Trade Policy Research Network.
    10. Bailey Klinger, 2009. "Is South–South Trade A Testing Ground For Structural Transformation?," UNCTAD Blue Series Papers 40, United Nations Conference on Trade and Development.
    11. Agostino, Mariarosaria & Trivieri, Francesco, 2014. "Geographical indication and wine exports. An empirical investigation considering the major European producers," Food Policy, Elsevier, vol. 46(C), pages 22-36.

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