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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.

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  • 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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    1. Frankel, Jeffrey & Stein, Ernesto & Wei, Shang-jin, 1995. "Trading blocs and the Americas: The natural, the unnatural, and the super-natural," Journal of Development Economics, Elsevier, vol. 47(1), pages 61-95, June.
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    4. 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 488-495, August.
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