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Trade types with Developed and Developing Countries What can we learn from Spanish data?

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  • Juliette Milgram

    (Department of Economic Theory and Economic History, University of Granada)

  • Ana Moro-Egido

    (Department of Economic Theory and Economic History, University of Granada)

Abstract

In this paper, we investigate the nature of Spanish intra-industry trade and find that intra-industry trade with CEEC, Asian and Mediterranean countries has increased considerably since the middle of the Nineties. The second aim of the paper is to study if the comparative advantage argument also explains vertical intra-industry trade between different income countries. According to OLS estimations, technological differences do increase DVIIT while physical capital differences decreases it. Results obtained applying Heckman method support the idea that differences in physical capital reduce the probability of IIT to occur but the level of vertical and horizontal IIT is better explained by the proximity of partners, the similarity in development level and size of market than by differences in physical capital endowments. The variables considered, mostly country-specific do have the same impact on vertical and horizontal IIT with emergent countries.

Suggested Citation

  • Juliette Milgram & Ana Moro-Egido, 2005. "Trade types with Developed and Developing Countries What can we learn from Spanish data?," ThE Papers 05/08, Department of Economic Theory and Economic History of the University of Granada..
    • Handle: RePEc:gra:wpaper:05/08
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    References listed on IDEAS

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    Cited by:

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    2. Bernardina Algieri, 2007. "Trade Specialisation Dynamics in Russia," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 49(2), pages 232-258, June.

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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