Country-specific determinants of vertical and horizontal intra-industry trade of South Africa: An empirical investigation

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2 Citations (Scopus)

Abstract

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 r esults, 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.

Original languageEnglish
Pages (from-to)406-425
Number of pages20
JournalSouth African Journal of Economics
Volume73
Issue number3
DOIs
Publication statusPublished - Sep 2005

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Empirical investigation
South Africa
Intra-industry trade
Econometrics
Gravity model
Statistical significance
Coefficients
Vertical intra-industry trade
Fixed effects
Robustness
Panel data
Economics

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

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abstract = "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 r esults, 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.",
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