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Country‐Specific Determinants Of Vertical And Horizontal Intra‐Industry Trade Of South Africa: An Empirical Investigation

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  • NASSER AL‐MAWALI

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 results, 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.

Suggested Citation

  • Nasser Al‐Mawali, 2005. "Country‐Specific Determinants Of Vertical And Horizontal Intra‐Industry Trade Of South Africa: An Empirical Investigation," South African Journal of Economics, Economic Society of South Africa, vol. 73(3), pages 406-425, September.
    • Handle: RePEc:bla:sajeco:v:73:y:2005:i:3:p:406-425
    DOI: 10.1111/j.1813-6982.2005.00027.x
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    1. Kim, MinKyoung & Cho, Guedae & Koo, Won W., 2003. "Asymmetric Pattern Of Intra-Industry Trade Between The United States And Canada," Agribusiness & Applied Economics Report 23625, North Dakota State University, Department of Agribusiness and Applied Economics.
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    1. Maylene Y. Damoense-Azevedo & André C. Jordaan, 2012. "Factors influencing bilateral intra-industry trade in the auto industry: the case of South Africa," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 63-82.

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