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The Asymmetric Effect of Endowments on Vertical Intra-Industrial Trade

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Author Info
Ana I. Moro (Universidad de Granada)
Juliette Milgram (Universidad de Granada)

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Abstract

This paper investigates the determinants of Spanish vertical intra-industrytrade with a large sample of countries. We empirically test the comparative advantageexplanation. For this aim, we build physical, human and technologicalcapital stocks. On average, when using OLS techniques, differences in endowmentsare a limitation for vertical intra-industry trade. Using quantile regressionstechniques, we observe that this negative effect decreases in absolute terms asvertical intra-industry trade flows increase and, in some cases, become positivefor the upper tails, thus supporting the view of a reduced version of the comparativeadvantage explanation. Este artículo trata de analizar los determinantes del comercio intra-industrialvertical en Espña con una muestra de países extensa. Se contrasta empíricamentela hipóteis de la ventaja comparativa. Con esta finalidad, hemos construido seriesde capital físico, humano y tecnológico. En media, cuando se utiliza la estimaciónMCO, las diferencias en dotaciones suponen una limitación al comercio intraindustrialvertical. Usando la técnica de regresion por cuantiles, se observa queeste efecto negativo disminuye, en términos absolutos, a medida que los flujos decomercio intra-industrial vertical se incrementan y, en algunos casos, llegan a serpositivos en los cuantiles altos de la distribución. Este resultado ofrece evidenciaa favor de una versión reducida de la hipótesis de la ventaja comparativa.

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File URL: http://www.ivie.es/downloads/docs/wpasec/wpasec-2008-13.pdf
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Publisher Info
Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 2008-13.

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Length: 24 pages
Date of creation: Oct 2008
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Publication status: Published by Ivie
Handle: RePEc:ivi:wpasec:2008-13

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Related research
Keywords: Comercio Intra-industrial; Ventaja Comparativa; Diferenciación Vertical; Stocks de Capital; Regresión Quantilica. Comparative Advantage; Vertical Differentiation; Capital Stocks; Quantile Regressions.;

Find related papers by JEL classification:
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models

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