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2012 GMM Estimator: An Application to Intraindustry Trade
Nuno Carlos Leitão
J. Appl. Math. 2012(SI07): 1-12 (2012). DOI: 10.1155/2012/857824


This paper investigates the determinants of intraindustry trade (IIT), horizontal IIT (HIIT), and Vertical IIT (VIIT) in the automobile industry in Portugal. The trade in this sector between Portugal and the European Union (EU-27) was examined, between 1995 and 2008, using a dynamic panel data. We apply the GMM system to solve the problems of serial correlation and the endogeneity of some explanatory variables. The findings are consistent with the literature. The difference between per capita incomes and factor endowments present a positive sign. These results are according to Heckscher-Ohlin predictions. The economic dimension has a positive impact on trade. A negative effect of the distance on bilateral trade was expected and the results confirm this, underlining the importance of neighbour partnerships for all trade.


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Nuno Carlos Leitão. "GMM Estimator: An Application to Intraindustry Trade." J. Appl. Math. 2012 (SI07) 1 - 12, 2012.


Published: 2012
First available in Project Euclid: 17 October 2012

Digital Object Identifier: 10.1155/2012/857824

Rights: Copyright © 2012 Hindawi


Vol.2012 • No. SI07 • 2012
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