Liberalization and United States’ Intra-Industry Trade

Volume: 2 Number: 4 December 1, 2012
  • Nuno Carlos Leitão
  • Muhammad Shahbaz
EN

Liberalization and United States’ Intra-Industry Trade

Abstract

The recent trend of globalization has given rise to a new paradigm in international economics, i.e. the simultaneous exports and imports of a product within country or a particular industry called intra-industry trade (IIT) or two-way trade. This study examines country-levels determinants of intra-industry trade, in U.S. trade. The manuscript applies a static and dynamic panel data approach. In contrast to previous studies, this paper used a dynamic panel data to solve the problems of serial correlation and endogeneity. The results indicate that IIT occurs more frequently among countries that are similar in terms of factor endowments. We also introduce economic dimension; this proxy confirms the positive effect of IIT. Our results also confirm the hypothesis that trade increases if the transportation costs decrease.

Keywords

Details

Primary Language

English

Subjects

-

Journal Section

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Authors

Nuno Carlos Leitão This is me

Muhammad Shahbaz This is me

Publication Date

December 1, 2012

Submission Date

December 1, 2012

Acceptance Date

-

Published in Issue

Year 2012 Volume: 2 Number: 4

APA
Leitão, N. C., & Shahbaz, M. (2012). Liberalization and United States’ Intra-Industry Trade. International Journal of Economics and Financial Issues, 2(4), 505-512. https://izlik.org/JA53NL54UC
AMA
1.Leitão NC, Shahbaz M. Liberalization and United States’ Intra-Industry Trade. IJEFI. 2012;2(4):505-512. https://izlik.org/JA53NL54UC
Chicago
Leitão, Nuno Carlos, and Muhammad Shahbaz. 2012. “Liberalization and United States’ Intra-Industry Trade”. International Journal of Economics and Financial Issues 2 (4): 505-12. https://izlik.org/JA53NL54UC.
EndNote
Leitão NC, Shahbaz M (December 1, 2012) Liberalization and United States’ Intra-Industry Trade. International Journal of Economics and Financial Issues 2 4 505–512.
IEEE
[1]N. C. Leitão and M. Shahbaz, “Liberalization and United States’ Intra-Industry Trade”, IJEFI, vol. 2, no. 4, pp. 505–512, Dec. 2012, [Online]. Available: https://izlik.org/JA53NL54UC
ISNAD
Leitão, Nuno Carlos - Shahbaz, Muhammad. “Liberalization and United States’ Intra-Industry Trade”. International Journal of Economics and Financial Issues 2/4 (December 1, 2012): 505-512. https://izlik.org/JA53NL54UC.
JAMA
1.Leitão NC, Shahbaz M. Liberalization and United States’ Intra-Industry Trade. IJEFI. 2012;2:505–512.
MLA
Leitão, Nuno Carlos, and Muhammad Shahbaz. “Liberalization and United States’ Intra-Industry Trade”. International Journal of Economics and Financial Issues, vol. 2, no. 4, Dec. 2012, pp. 505-12, https://izlik.org/JA53NL54UC.
Vancouver
1.Nuno Carlos Leitão, Muhammad Shahbaz. Liberalization and United States’ Intra-Industry Trade. IJEFI [Internet]. 2012 Dec. 1;2(4):505-12. Available from: https://izlik.org/JA53NL54UC