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The Annals of Regional Science

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01.01.2014 | Original Paper

Trade patterns in the process of European integration: Evidence for the intraindustrial exchanges of a Mediterranean peripheral region

verfasst von: Mónica Rivera

Erschienen in: The Annals of Regional Science | Ausgabe 1/2014

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Abstract

The aim of this paper is to find out about the impact of the integration processes on peripheral regions, in connection with the growth of nontraditional trade or intraindustry trade. Firstly, the specialization pattern estimating the Grubel and Lloyd Indexes and decomposition by nature differentiation is described. Secondly, an econometric model based on a logistic function is elaborated to explain the determinants of this typology of flow developed in the region. The conclusions are clear: the predominance of the traditional interindustrial specialization and the growth of intraindustry trade differentiated by quality. This implies, according to smooth adjustment hypothesis, a more difficult and harder adjustment process after the exchanges liberalization.

Vorheriger Artikel An intra-industry trade model in a vertical differentiation framework

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The unit value is estimated as a result of total monetary value export (or import) product over total exported (imported) units.

The limit of 15 % is fixed by Greenaway et al, Op. cit. because it would reflect the variation on cost of transport and freight charge.

In the analysis by countries, the subindex \(i\) will indicate the product, and subindex \(j\) the country of destination or origin of the trade flows.

In this case \(w = \hbox {GDP}_\mathrm{Et} / \left[ {\hbox {GDP}_\mathrm{Et} + \hbox {GDP}_\mathrm{jt}}\right] \) where GDP is the Gross Domestic Product per habitant.

In addition to tolerances and variance inflation factor study, the value of Condition number, 10.74, showed that there was no problem of multi-colinearity.

In addition to graphical studies, the signification levels in the Kolgomorov–Smirnov and Shapiro–Wilks tests, 0.20 and 0.58, made it impossible to reject the normality hypothesis in the residuals.

The Durbin–Watson statistic confirmed that there was not autocorrelation in the residuals, and it was highly unlikely the omission of relevant variables.

In addition to graphical studies, the signification levels in the Kolgomorov–Smirnov and Shapiro–Wilks tests, 0.20 and 0.82, made it impossible to reject the normality hypothesis in the residuals.

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Titel: Trade patterns in the process of European integration: Evidence for the intraindustrial exchanges of a Mediterranean peripheral region
verfasst von: Mónica Rivera
Publikationsdatum: 01.01.2014
Verlag: Springer Berlin Heidelberg
Erschienen in: The Annals of Regional Science / Ausgabe 1/2014
Print ISSN: 0570-1864
Elektronische ISSN: 1432-0592
DOI: https://doi.org/10.1007/s00168-013-0583-z

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