IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v31y1999i2p175-182.html

A test of the Linder hypothesis in Pacific NIC trade 1965-1990

Author

Listed:
  • Peter Chow
  • Mitchell Kellman Yochanan

Abstract

This paper examines the degree to which the taste similarity (Linder) hypothesis explains trade patterns between the 'Four Tigers' East Asian New Industrial Countries (NICs), and their major OECD markets (and suppliers). The tests cover the period 1965-90, during which trade between these countries expanded at unprecedented rates. The tests employ an extensive disaggregated data set including all manufactured exports from the East Asian NICs to various major OECD markets. A new measure of trade intensity is employed, thus correcting a potentially critical bias affecting previous studies in this area. The results tend to support the applicability of the taste - differential (Linder) model as an important explainer of the changing pattern of trade for this sample of trade partners. The findings are generally consistent with other intertemporal studies (which 'neutralize' spatial effects on trade, such as Kennedy, T. and McHugh, R., Southern Economic Journal, 46 (3), 898-903, 1980); and support Hanink, D. (Weltwirtschaftliches Archiv, 126 (2), 257-67, 1990) hypothesis that the Linder hypothesis may provide a relatively good explanation of trade for countries above some per capita income threshold, and for Linder's original (An Essay on Trade and Transformation, John Wiley, New York, 1961), and Grey, H.P.'s (Weltwirtschaftliches Archiv, 116 (3), 447-70, 1980) suggestion that the hypothesis should prove especially applicable for trade in differentiated products.

Suggested Citation

  • Peter Chow & Mitchell Kellman Yochanan, 1999. "A test of the Linder hypothesis in Pacific NIC trade 1965-1990," Applied Economics, Taylor & Francis Journals, vol. 31(2), pages 175-182.
    • Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:175-182
    DOI: 10.1080/000368499324408
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324408
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/000368499324408?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Chow, Peter C. Y. & Kellman, Mitchell H., 1993. "Trade - The Engine of Growth in East Asia," OUP Catalogue, Oxford University Press, number 9780195078954.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rahul Sen & Sadhana Srivastava & Don Webber, 2015. "Preferential trading agreements and the gravity model in presence of zero and missing trade flows: Early results for China and India," Working Papers 2015-02, Auckland University of Technology, Department of Economics.
    2. Dharmendra Dhakal & Gyan Pradhan & Kamal P. Upadhyaya, 2011. "“Another 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.
    3. Changkyu Choi, 2002. "Linder hypothesis revisited," Applied Economics Letters, Taylor & Francis Journals, vol. 9(9), pages 601-605.
    4. 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.
    5. Rahul Sen & Sadhana Srivastava & Don J Webber, 2015. "Effects of preferential trade agreements in the presence of zero trade flows: the cases of China and India," Working Papers 20151507, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    6. Xu Wang & Ryan P. Badman, 2016. "A Multifaceted Panel Data Gravity Model Analysis of Peru's Foreign Trade," Papers 1612.01155, arXiv.org.
    7. Xu WANG & Ryan P. BADMAN, 2016. "A Multifaceted Panel Data Gravity Model Analysis of Peru’s Foreign Trade," Turkish Economic Review, KSP Journals, vol. 3(4), pages 562-577, December.
    8. Khadan, Jeetendra & Hosein, Roger, 2013. "New Empirical Insights into the “Natural Trading Partner” Hypothesis for CARICOM Countries," MPRA Paper 50493, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ping HUA & YUE, 2001. "Does Comparative Advantage Explain Export Patterns in China?," Working Papers 200108, CERDI.
    2. Khee Giap Tan & Luu Nguyen Trieu Duong & Hui Yin Chuah, 2019. "Impact of exchange rates on ASEAN's trade in the era of global value chains: An empirical assessment," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 28(7), pages 873-901, October.
    3. Bharat Trehan, 1994. "Trade and growth: some recent evidence," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue jul1.
    4. ., 2012. "Is East Asia a “Natural Trade Bloc”? The Trade Complementarity Index, the Intensity Index, and the Bias Index," Chapters, in: Trade and Industrial Development in East Asia, chapter 8, Edward Elgar Publishing.
    5. Voxi Heinrich Amavilah, 2003. "Exports and Economic Growth in Namibia, 1968-1992," Development and Comp Systems 0307004, University Library of Munich, Germany.
    6. Mitchell H. Kellman & Yochanan Shachmurove, 2011. "Herfindahl-Hirschman Meets International Trade and Development Theories," Working Papers 50, Department of Applied Econometrics, Warsaw School of Economics.
    7. Wolcott, Susan, 2010. "Explorations' contribution to the 'Asian Century'," Explorations in Economic History, Elsevier, vol. 47(3), pages 360-367, July.
    8. P. J. Lloyd & Hisako Toguchi, 1996. "East Asian Export Competitiveness: New Measures and Policy Implications," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 10(2), pages 1-10, November.
    9. Christopher Reynolds, 2001. "A Conceptual Model Of Global Business Growth In Southeast Asia," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 6(1), pages 76-98.
    10. William E. James & Oleksandr Movshuk, 2004. "Shifting International Competitiveness: An Analysis of Market Share in Manufacturing Industries in Japan, Korea, Taiwan and the USA," Asian Economic Journal, East Asian Economic Association, vol. 18(2), pages 121-148, June.
    11. repec:idb:brikps:377 is not listed on IDEAS
    12. Mitchell Kellman & Mitchell Yochanan Shachmurove, 2012. "Trade Sophistication in a Transition Economy: Poland 1980–2009," Working Papers 64, Department of Applied Econometrics, Warsaw School of Economics.
    13. Hsiao, Frank S. T. & Hsiao, Mei-chu W., 2003. ""Miracle Growth" in the Twentieth Century--International Comparisons of East Asian Development," World Development, Elsevier, vol. 31(2), pages 227-257, February.
    14. Ludger Lindlar, 1995. "Internationale Wettbewerbsfähigkeit der südostasiatischen Schwellen- und Entwicklungsländer," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 64(2), pages 303-322.
    15. Jonathan Perraton, 2003. "Balance of Payments Constrained Growth and Developing Countries: An examination of Thirlwall's hypothesis," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(1), pages 1-22.
    16. Voxi Heinrich Amavilah, 2003. "Resource Inefficiency and Poor Aggregate Economic Performance in African Countries: The Case of Namibia, 1968-1992," Development and Comp Systems 0307005, University Library of Munich, Germany.
    17. Xiaoming Huang, 2008. "Institutional competitiveness and institutional aging: the dynamism of East Asian Growth," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 13(1), pages 3-25.
    18. Mitchell H. Kellman & Yochanan Shachmurove, 2012. "The Ability to Adapt and Overcome Obstacles: Machinery Exports of Poland," PIER Working Paper Archive 12-004, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    19. Dowlinga, Malcolm & Cheang, Chia Tien, 2000. "Shifting comparative advantage in Asia: new tests of the "flying geese" model," Journal of Asian Economics, Elsevier, vol. 11(4), pages 443-463.
    20. Mitchell H. Kellman & Yochanan Shachmurove, 2010. "Adam Smith Meets an Index of Specialization in International Trade," PIER Working Paper Archive 10-029, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    21. Ramkishen Rajan, 2010. "The Currency and Financial Crisis in Southeast Asia: A Case of 'Sudden Death' or Death Foretold'?," Working Papers id:2583, eSocialSciences.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:31:y:1999:i:2:p:175-182. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.