Premium
COUNTRY‐SPECIFIC DETERMINANTS OF VERTICAL AND HORIZONTAL INTRA‐INDUSTRY TRADE OF SOUTH AFRICA: AN EMPIRICAL INVESTIGATION
Author(s) -
ALMAWALI NASSER
Publication year - 2005
Publication title -
south african journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.502
H-Index - 31
eISSN - 1813-6982
pISSN - 0038-2280
DOI - 10.1111/j.1813-6982.2005.00027.x
Subject(s) - gravity model of trade , economics , econometrics , robustness (evolution) , intra industry trade , horizontal and vertical , panel data , gravity equation , bilateral trade , econometric model , empirical research , international economics , international trade , trade barrier , geography , statistics , mathematics , biochemistry , chemistry , geodesy , archaeology , china , gene
The main purpose of this study is to investigate the country‐specific determinants of horizontal and vertical intra‐industry trade (IIT) in South Africa using the gravity model of trade in a panel data setting. It empirically tests new and existing country‐specific hypotheses of intra‐industry trade. To ensure the sensitivity and robustness of the results, three different econometric approaches have been used in estimating the gravity models of intra‐industry trade: the consistent coefficient approach, the fixed effects approach, and the between effects approach. The econometric results are satisfactory in terms of economic interpretation and statistical significance. They are, in most cases, pertinent in determining the country pattern of South Africa's IIT and offer a new empirical validation to the theoretical explanatory variables.