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An Essay on the Applicability of the Linder Hypothesis in Determining the Patterns of the Romanian International Trade

Author

Listed:
  • Tania Georgia VICIU

    (The Bucharest University of Economic Studies)

  • Larisa MIHOREANU

    (The Bucharest University of Economic Studies)

  • Carmen COSTEA

    (Spiru Haret University)

Abstract

The paper tries to shed light on the effectiveness of a previously proposed and wide accepted trade model and its consistency in developing economies such as Romania. The structure and evolution of the exports and imports of Romania in the last years have indicated an increase in the intra-industry trade, and concurrently, a shift towards the commerce in predominantly capital-intensive commodities. While the Linder theorem provides useful insight into the patters of international trade formation, the hypothesis that trade is proportionate with the demand and market similarities expressed by GDP per capita, does not test out for the data available for Romania and its main economic and commercial partners. The political and economic restrictions and opportunities generated by foreign relations in the region can be attributed with the role of trade-creating forces, rather than income similarities on the markets.

Suggested Citation

  • Tania Georgia VICIU & Larisa MIHOREANU & Carmen COSTEA, 2016. "An Essay on the Applicability of the Linder Hypothesis in Determining the Patterns of the Romanian International Trade," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 5(1), pages 52-62, March.
    • Handle: RePEc:sph:rjedep:v:5:y:2015:i:1:p:52-62
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    File URL: http://jedep.spiruharet.ro/RePEc/sph/rjedep/JEDEP16_4Viciu_p52-62.pdf
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    References listed on IDEAS

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    Cited by:

    1. Doukoure Charle Fe, 2021. "Trade flows between the West African Economic and Monetary Union's members so little: does exports structure matter ?," Economics Bulletin, AccessEcon, vol. 41(2), pages 816-833.
    2. Andini Nurwulandari & I Made Adnyana & Hasanudin, 2019. "Did Inter-Regional Trade Agreements Bring Mutual Benefits? An Empirical Scheme of Indonesian Commodity Exports in Asean-China Free Trade Area," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(6), pages 241-249, October.

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    More about this item

    Keywords

    trade models; economic development; trade-creating forces; commercial advantages; capital-intensive commodities; labour-intensive commodities;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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