Vertical intra-industry trade between EU and accession countries / Hubert Gabrisch
VerfasserGabrisch, Hubert
ErschienenHalle : Inst. für Wirtschaftsforschung, 2006 ; Halle, Saale : Universitäts- und Landesbibliothek Sachsen-Anhalt, 2006
UmfangOnline-Ressource (Text, 144 kB)
SerieIWH-Diskussionspapiere ; 2006,12
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Vertical intra-industry trade between EU and accession countries [0.14 mb]
The paper analyses vertical intra-industry trade between EU and Accession countries and concentrates on two country-specific determinants: Differences in personal income distribution and in technology. Both determinants have a strong link to national policies and to cross-border investment flows. In contrast to most other studies income distribution is not seen as time-invariant variable but as changing over time. What is new is also that differences in technology are tested in comparison with cost advantages from capital/labour ratios. The study applies panel estimation techniques with GLS. Results show country-pair fixed effects to be of high relevance for explaining vertical intraindustry trade. In addition bilateral differences in personal income distribution and their changes are positive related to vertical intra-industry trade in this special regional integration framework; hence distributional effects of policies matter. Also technology differences turn out to be positively correlated with vertical intra-industry trade. However the cost variable (here: relative GDP per capita) shows no clear picture particularly not in combination with the technology variable.