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Intra-industry trade and economic distance : causality tests using panel data

Venet, Baptiste; Peltrault, Frédéric (2005-07), Intra-industry trade and economic distance : causality tests using panel data, ETSG 2005 Dublin Seventh Annual Conference, 2005-09, Dublin, Irlande

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Type
Communication / Conférence
Date
2005-07
Conference title
ETSG 2005 Dublin Seventh Annual Conference
Conference date
2005-09
Conference city
Dublin
Conference country
Irlande
Pages
15
Metadata
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Author(s)
Venet, Baptiste
Peltrault, Frédéric
Abstract (EN)
In this paper, we implement Granger causalty tests using panel data as methodology perfected by Hurlin (2004, 2005) and Hurlin and Venet(2004). We consider the bilateral trade patterns of the European Union with 17 countries over the period 1976-2000. We show that for the whole sample, there are no-causal relationship whatever the lag considered. However, we find some causal relationship from the economic distance to the share of intra-industry trade in the sub-sample of emerging countries and the inverse relationship in the sub-sample of developing countries.
Subjects / Keywords
Panel data; Granger causality tests; Intra-industry trade; Economic distance
JEL
G28 - Government Policy and Regulation
G18 - Government Policy and Regulation
O16 - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
C11 - Bayesian Analysis: General
C23 - Panel Data Models; Spatio-temporal Models
F1 - Trade