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Linder hypothesis revisited

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  • Changkyu Choi

Abstract

Linder posed a hypothesis in 1961 that the closer the preference structure between two countries is, the bigger the trade volume becomes. The empirical results using pooled trade data from 63 countries for 1970, 1980, 1990, and 1992 are in support of the Linder hypothesis. It is also found that the Linder hypothesis gained strength in the 1990s. Recent globalization may have strengthened the Linder hypothesis.

Suggested Citation

  • Changkyu Choi, 2002. "Linder hypothesis revisited," Applied Economics Letters, Taylor & Francis Journals, vol. 9(9), pages 601-605.
  • Handle: RePEc:taf:apeclt:v:9:y:2002:i:9:p:601-605
    DOI: 10.1080/13504850110111234
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    References listed on IDEAS

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    1. Shang-Jin Wei & Jeffrey A. Frankel, 1998. "Open Regionalism in a World of Continental Trade Blocs," IMF Staff Papers, Palgrave Macmillan, vol. 45(3), pages 440-453, September.
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    Cited by:

    1. Galli, Paolo & Fraga, Carla & de Sequeira Santos, Marcio Peixoto, 2016. "Gravitational force exerted by Brazilian tourist destinations on foreign air travelers," Journal of Air Transport Management, Elsevier, vol. 55(C), pages 76-83.
    2. Hendrik W. Kruse, 2016. "Revisiting the Sectoral Linder Hypothesis: Aggregation Bias or Fixed Costs?," LIS Working papers 658, LIS Cross-National Data Center in Luxembourg.
    3. repec:eur:ejserj:73 is not listed on IDEAS
    4. Kiyong Keum, 2010. "Tourism flows and trade theory: a panel data analysis with the gravity model," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(3), pages 541-557, June.
    5. Dhakal, Dharmendra & Pradhan, Gyan & Upadhyaya, Kamal P., 2011. "ÔÇťAnother Empirical Look at the Theory of Overlapping Demands - Un altro sguardo empirico alla teoria delle overlapping demands," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 64(1), pages 103-113.
    6. Ari Kokko & Patrik Gustavsson Tingvall, 2014. "Distance, Transaction Costs, and Preferences in European Trade," The International Trade Journal, Taylor & Francis Journals, vol. 28(2), pages 87-120, June.
    7. Claudia Bernasconi, 2013. "Similarity of income distributions and the extensive and intensive margin of bilateral trade flows," ECON - Working Papers 115, Department of Economics - University of Zurich.
    8. Tania Georgia VICIU & Larisa MIHOREANU & Carmen COSTEA, 2016. "An Essay on the Applicability of the Linder Hypothesis in Determining the Patterns of the Romanian International Trade," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 5(1), pages 52-62, March.

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