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The determinants of intra-industry trade in the tourism services

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  • Leitão, Nuno Carlos

Abstract

Purpose- This manuscript examines the determinants of intra-industry trade (IIT) in the tourism services by Portugal. The trade in this sector between Portugal and 17 countries was examined between 2002 and 2009. Design/methodology/approach- The paper formulates theoretical hypothesis that may explain the intra-industry trade in the tourism services. These hypotheses are tested using a dynamic panel data analysis. Findings- The result show that intra-industry trade occurs more frequently among countries that are similar in terms of factor endowments. The economic dimension and border confirm the positive impact in IIT. Our results also show that intra-industry trade increases if transportation costs decrease. Originality of the research-This article confirms relevant theoretical hypotheses on the causes of intra-industry trade. The results obtained with the Arellano and Bond GMM system estimator suggest that the building of dynamic theoretical models will be of interest to academic researchers in tourism services.

Suggested Citation

  • Leitão, Nuno Carlos, 2012. "The determinants of intra-industry trade in the tourism services," MPRA Paper 37444, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37444
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    References listed on IDEAS

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    1. Richard Blundell & Stephen Bond, 2000. "GMM Estimation with persistent panel data: an application to production functions," Econometric Reviews, Taylor & Francis Journals, vol. 19(3), pages 321-340.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Intra-industry trade; tourism services; dynamic panel data; Portugal;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L70 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - General

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