Intra-Industry Trade in the Automobile Components Industry: An Empirical Analysis

Abstract

This manuscript examines the determinants of intra-industry trade (IIT) in the automobile component sector in Portugal. We have examined the Portuguese trade in this sector between European Union (EU-27), the BRIC (Brazil, Russia, India and China), and United States between 1995 and 2006. Using a panel data approach, the results show a negative correlation between endowments and IIT. These results indicate that IIT occurs more frequently among countries that are similar in terms of factor endowments. We also introduce economic and cultural dimensions; these proxies confirm the positive effects of IIT. Our results also confirm the hypothesis that trade increases if the transportation costs decrease.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 17 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.