Document Type : مقالات پژوهشی
Author
Abstract
Abstract
In this paper, we analyze the determinants of Intra-Industry trade (IIT) in the Agriculture, Industry and service sectors between Iran and her trading partners, i.e. European Union, ECO, GCC, D8, OIC and ASEAN countries using dynamic panel data and GMM during 1980-2009.
This study uses country-specific characteristics such as economic size, per capita income, foreign direct investment, geographical distance, and trade imbalance as explanatory variables. The results indicate that economic size, per capita income, and geographical distance explain most of IIT between Iran and her trading partners. According to econometric findings, the economic size has high and positive correlation with IIT, however per capita income affects negatively IIT. Thus, differences in aggregate demand and supply should be considered in selecting trade partners. The similarity in income structure leads to same demand structure and expansion of trade volume. In addition, geographical distance and trade imbalance has negative effect on IIT flow in Iran.
Keywords: Intra-industry Trade, Regional blocs, Dynamic, panel data, Economic scale, GMM
JEL Classification:C20 , F12.
Keywords
References
1- Anderson, J. E., & Wincoop, E. V. (2001). Gravity with gravitas: A solution to the border puzzle. NBER Working Paper, 8079.
2- Abd-el Rahman, K. (1991). Firms competitive and national comparative advantages as joint determinants of trade composition. Weltwirtschaftliches Archiv, 27, 83-97.
3- Aquino, A. (1978). Intra-industry trade and inter-industry specialization as concurrent of international trade in manufactures. WeltwirtschaftlichesArchiv, 114, 275-296.
4- Azarbaijani, K., & Eizadi, G. (2006). Intra-industry trade iran and china: A New Look. Journal of Economic Studies, 26, 44-66. (In persian)
5- Akhavi, A., & Hosini, M. A. (2006). Capacity assessment of iran's exports of agricultural products EU. Journal of Agricultural and Development Economics, 54, 125-157. (In persian)
6- Afshari. Z., & Solimani movahed, M. (2010). Hkshr theory test - avhlyn - samuelson at intra-industry trade Iran (dynamic panel data approach). Journal of Business Research, 56-72, 1-23.
7- Brander, J. A., & Krugman, P. R. (1983). A reciprocal dumping model of international rade. Journal International Economics, 15, 313-321.
8- Balassa, B. (1966). Tariff reductions and trade in manufactures among industrial countries. American Economic Review, 56(3), 466-473.
9- Balassa, B., & Bauwens L. (1987). Intra-industry specialization in multi-country and multi-idustry framework. The Economic Journal, 923-939.
10- Badinger, H., & F. Breus. Trade and productivity: An industry perspective. Empirica, 35, 2008.- 213-231.
11- Eaton, J., & Kierzkowski, H. (1984). Oligopolistic competition, product variety and international trade. In H.Kierzkowki (Eds). Monopolistic competition and international trade. Oxford USA: Oxford University Press, 69-83.
12- Falvey, R., & Kierzkowski, H. (1987).Product quality, Intra-industry trade (Im) Perfect competition. In H.Kierzkowki (Eds). Protection and Competition in International Trade. Essays in Honour of W.M.Corden: Oxford USA: Basil Blackwell, 143-161.
13- Fontagn´e, L., M. Freudenberg & N. P´eridy (1997). Trade patterns inside the single market. CEPII Working paper.
14- Grubel, H. (1967). Intra - industry specialisation and the pattern of trade. Canadian Journal of Economics and Political Science, 33 (3), 374-388.
15- Grubel, H. (1970). The theory of optimum currency areas. The Canadian Journal of Economics, 3(2), 318-324.
16- Grubel, H. G., & Lloyd P.J. (1975). Intra-industry trade: the theory and measurement of international trade in differentiated products. New York: John Wiley.
17- Greenaway, David., & Milner C. (1983). On the measurement of intra-industry trade. Economic Journal,Vol.93, 900-908.
18- Greenaway, D, R. Hine & Milner, C. (1994). Country-specific factors and the pattern of horizontal and vertical intra-industry trade in the UK. Weltwirtschaftliches Archiv, 130, 77–100.
19- Greenaway, D., Hine R., & Milner, C. (1995). Vertical and horizontal intra-industry trade: A cross industry analysis for the United Kingdom. Economic Journal, 105, November, 1505-1518.
20- Helpman, E., & Krugman, P. (1985). Market structure and foreign trade. Brighton, UK: Harvester Wheatsheaf.PP 25-27.
21- Helpman, E. (1987). Imperfect competition and international trade: Evidence from fourteen industrial countries. Journal of Japononese International and International Economics, 1(1), 62-81.
22- Hummels, D., & Levinshon, J. (1995). Monopolisitc competition and international trade: reconsidering the evidence. Quarterly Journal of Economics, 110 (3), 799-836.
23- Lancaster, K. (1980). Intra-industry trade under perfect monopolistic competition. Journal of International Economics, 10, 151-175.
24- Leitão, N. C., & Faustino, H. (2009). Intra-industry trade in the automobile components industry: An empirical analysis. Journal of Global Business and Technology, 5(1), 31-41.
25- Krugman, P. (1979). Increasing returns monopolistic competition, and international trade. Journal of International Economics, 9 (4): 469-479.
26- Krugman, P. (1981). Intra-industry specialization and the gains from trade. Journal of Political Economicy, 89(5): 959-973.
27- Kandugan, Y. (2001). Intra-industry trade adjustment of labor welfare gains in asymmetric liberalization policies: The case of Europe agreement, Department of Economic, University of Michigan, 27-46.
28- Michaely, M.(1962). Multilateral balancing in international trade. American Economic Review, Vol.52, 685-702.
29- Nafari, A. & Rasekhi, S. (2002). Estimation of intra-industry trade. Journal of Business Research, 25, 1-20. (in persian)
30- Rasekhi, S. (2007). Country-specific determinants of Intra-industry trade in developing countries with emphasis on Iran. Journal of Business Research, 45, 84-96. (in persian)
31- Rasekhi, S. (2007). Methodology for the measurement of intra-industry trade: a case study of manufacturing industries. Journal of Economic Research, 81, 61-84.(In persian)
32- Rasti, M. (2009). Intra-industry trade study in transportation, travel, financial services (comparative developing countries and developed). Trade Studies, 35, 102-124. (In persian)
33- Ruffin,R.J. (1999). The nature and significance of intra-industry trade. Journal of Economic and Financial Review, Fourth Quarter:2-9.
34- Skabic, I. &Orlic, E.(2007) .Determinants of FDI in CEE and western balkman countries (Is Accession to the EU important for attracting FDI?). Economic and Business Review, 9 (4), 333-350.
35- Verdoorn, P. J. (1960). The Intra-bloc trade of benelux. in: E.A.G. Robinson (Ed.), Economic Consequences of the Size of Nations, 291-329, London:Macmillan.
36- Lee H. H., & Lee Y. Y. (1993). Intra-industry trade in manufacturers: The case of Korea. Weltwirtschaftliches Archiv., 129(1), 159-171.
37- Umemoto, M. (2005). Development of intra-industry trade between Korea and Japan: The case of automomile parts industry. Center for international trade studies (CITS) Working Papers.
38- Zhang, Y., & Clark, D. P. (2009). Pattern and determinants of United States' intra-industry trade. The International Trade Journal, 23, 325-356.
39- Zieaie bigdeli, M .T. & Hasanpoor, Y. (2004). Intra-industry trade of the member countries of the islamic conference (OIC) . Journal of Business Research, 31, 91-125. (In persian)
)
Send comment about this article