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Determinants of net trade flows in the OECD: new evidende with special emphasis on the case of the former communist members

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Abstract

This study explores - by estimating an econometric panel data model – the capacity of some of the hypotheses formulated in the recent dynamic models of trade and economic growth to explain the bilateral trade of OECD countries. In this respect, special emphasis is placed on the former communist members in order to assess whether their case differs from that of the OECD on the whole. Amongst other findings, our study suggests that the larger a country’s endowment of capital, both tangible and intangible (human and technological capital), in relation to that of its trade partners, the better the export/import ratio of its bilateral trade. It also shows that direct investment enhances the export/import ratio with the host country. The results obtained for the former communist countries reflect only a few minor differences in relation to the others.

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  • Carmela Martin & Francisco J. Velazquez, 2000. "Determinants of net trade flows in the OECD: new evidende with special emphasis on the case of the former communist members," European Economy Group Working Papers 4, European Economy Group.
  • Handle: RePEc:eeg:euroeg:4
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    Cited by:

    1. Massoud Tansa G. & Magee Christopher S., 2012. "Trade and Political, Military, and Economic Relations," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(1), pages 1-39, May.
    2. Carmela Martin & Francisco J. Velazquez & Jorge Crespo., 2001. "The Role of International Technological Spillovers in the Economic Growth of the OECD Countries ," European Economy Group Working Papers 6, European Economy Group.

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    Keywords

    trade flows; Central and Eastern European Countries (CEECs);

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