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Modelling manufactured exports in Europe: a two-regime approach

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  • Alan King

Abstract

Of the hundreds of empirical studies examining the determinants of aggregate export volumes, almost all are based on a theoretical model that assumes that firms are operating in an identical environment. The very few studies that attempt to relax this assumption are all subject to their limitations. In this paper, a simple two-regime model is presented that allows for some environmental heterogeneity but avoids the shortcomings of the earlier approaches. This model performs generally satisfactorily when applied to nine Western European nations.

Suggested Citation

  • Alan King, 2001. "Modelling manufactured exports in Europe: a two-regime approach," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 9(2), pages 173-192.
  • Handle: RePEc:taf:jitecd:v:9:y:2001:i:2:p:173-192
    DOI: 10.1080/09638190050028162
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    References listed on IDEAS

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    1. Banerjee, Anindya & Dolado, Juan J. & Galbraith, John W. & Hendry, David, 1993. "Co-integration, Error Correction, and the Econometric Analysis of Non-Stationary Data," OUP Catalogue, Oxford University Press, number 9780198288107.
    2. Robert M. Stern & Jonathan Francis & Bruce Schumacher, 1976. "Price Elasticities in International Trade," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-03137-5, March.
    3. Irving B. Kravis & Robert E. Lipsey, 1971. "Price Competitiveness in World Trade," NBER Books, National Bureau of Economic Research, Inc, number krav71-1.
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