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The Asymmetric Effect of Endowments on Vertical Intra-Industrial Trade

  • Ana I. Moro

    (Universidad de Granada)

  • Juliette Milgram

    (Universidad de Granada)

This paper investigates the determinants of Spanish vertical intra-industrytrade with a large sample of countries. We empirically test the comparative advantageexplanation. For this aim, we build physical, human and technologicalcapital stocks. On average, when using OLS techniques, differences in endowmentsare a limitation for vertical intra-industry trade. Using quantile regressionstechniques, we observe that this negative effect decreases in absolute terms asvertical intra-industry trade flows increase and, in some cases, become positivefor the upper tails, thus supporting the view of a reduced version of the comparativeadvantage explanation. Este artículo trata de analizar los determinantes del comercio intra-industrialvertical en Espña con una muestra de países extensa. Se contrasta empíricamentela hipóteis de la ventaja comparativa. Con esta finalidad, hemos construido seriesde capital físico, humano y tecnológico. En media, cuando se utiliza la estimaciónMCO, las diferencias en dotaciones suponen una limitación al comercio intraindustrialvertical. Usando la técnica de regresion por cuantiles, se observa queeste efecto negativo disminuye, en términos absolutos, a medida que los flujos decomercio intra-industrial vertical se incrementan y, en algunos casos, llegan a serpositivos en los cuantiles altos de la distribución. Este resultado ofrece evidenciaa favor de una versión reducida de la hipótesis de la ventaja comparativa.

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Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 2008-13.

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Length: 24 pages
Date of creation: Oct 2008
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasec:2008-13
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  1. Gabszewicz, Jean Jaskold, et al, 1981. "International Trade in Differentiated Products," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(3), pages 527-34, October.
  2. José Blanes & Carmela Martín, 2000. "The nature and causes of intra-industry trade: Back to the comparative advantage explanation? The case of Spain," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 136(3), pages 423-441, 09.
  3. Jarko Fidrmuc & Daniela Grozea-Helmenstein & Andreas Wörgötter, 1999. "East-west intra-industry trade dynamics," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(2), pages 332-346, June.
  4. 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..
  5. Lionel Fontagné & Michaël Freudenberg & Deniz Ünal, 1995. "Régionalisation et échanges de biens intermédiaires," Working Papers 1995-11, CEPII research center.
  6. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December.
  7. Joan A. Martín & Vicente Orts, 2001. "A two-stage analysis of monopolistic competition models of intraindustry trade," Investigaciones Economicas, Fundación SEPI, vol. 25(2), pages 315-333, May.
  8. Robert C. Shelburne, 2002. "Bilateral Intra-Industry Trade in a Multi-Country Helpman-Krugman Model," International Economic Journal, Taylor & Francis Journals, vol. 16(4), pages 53-73.
  9. Lionel Fontagné & Michaël Freudenberg, 1997. "Intra-Industry Trade: Methodological Issues Reconsidered," Working Papers 1997-01, CEPII research center.
  10. Juliette Milgram Baleix, 2005. "Quotas on Clothing Imports: Impact and Determinants of EU Trade Policy," Review of International Economics, Wiley Blackwell, vol. 13(3), pages 445-460, 08.
  11. Christophe Kamps, 2005. "New Estimates of Government Net Capital Stocks for 22 OECD Countries 1960-2001," Public Economics 0506015, EconWPA.
  12. Falvey, Rodney E., 1981. "Commercial policy and intra-industry trade," Journal of International Economics, Elsevier, vol. 11(4), pages 495-511, November.
  13. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
  14. repec:fth:michin:324 is not listed on IDEAS
  15. Nuno Crespo & Maria Fontoura, 2004. "Intra-industry trade by types: What can we learn from Portuguese data?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 140(1), pages 52-79, March.
  16. Lionel Fontagné & Michael Frudenberg & Nicolas Péridy, 1998. "Commerce international et structures de marché : une vérification empirique," Économie et Prévision, Programme National Persée, vol. 135(4), pages 147-167.
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