The determinants of intra-industry trade in the tourism services

Leitão, Nuno Carlos (2012): The determinants of intra-industry trade in the tourism services.

Abstract

Purpose- This manuscript examines the determinants of intra-industry trade (IIT) in the tourism services by Portugal. The trade in this sector between Portugal and 17 countries was examined between 2002 and 2009. Design/methodology/approach- The paper formulates theoretical hypothesis that may explain the intra-industry trade in the tourism services. These hypotheses are tested using a dynamic panel data analysis. Findings- The result show that intra-industry trade occurs more frequently among countries that are similar in terms of factor endowments. The economic dimension and border confirm the positive impact in IIT. Our results also show that intra-industry trade increases if transportation costs decrease. Originality of the research-This article confirms relevant theoretical hypotheses on the causes of intra-industry trade. The results obtained with the Arellano and Bond GMM system estimator suggest that the building of dynamic theoretical models will be of interest to academic researchers in tourism services.

• Item Type: MPRA Paper
• Language: English
• Keywords: Intra-industry trade, tourism services, dynamic panel data, Portugal
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; L - Industrial Organization > L7 - Industry Studies: Primary Products and Construction > L70 - General

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