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Determinants of Net Trade Flows in the OECD: New Evidence with Special Emphasis on the Former Communist Members

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  • Carmela Martín
  • Francisco J. Velázquez

Abstract

This study estimates an econometric panel‐data model, in order to explore the capacity of some of the hypotheses formulated in recent dynamic models of trade and economic growth to explain the bilateral trade of OECD countries. The study suggests that the larger a country’s endowment of both tangible and intangible (human and technological) capital in relation to that of its trade partners, the higher the export/import ratio of its bilateral trade. It also shows that direct investment enhances the export/import ratio with the host country. The former communist countries reflect only minor differences from the other OECD members.

Suggested Citation

  • Carmela Martín & Francisco J. Velázquez, 2002. "Determinants of Net Trade Flows in the OECD: New Evidence with Special Emphasis on the Former Communist Members," Review of International Economics, Wiley Blackwell, vol. 10(1), pages 129-139, February.
    • Handle: RePEc:bla:reviec:v:10:y:2002:i:1:p:129-139
    DOI: 10.1111/1467-9396.00322
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    Cited by:

    1. Massoud Tansa G. & Magee Christopher S., 2012. "Trade and Political, Military, and Economic Relations," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(1), pages 1-39, May.

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