AN ESSAY ON THE APPLICABILITY OF THE LINDER HYPOTHESIS IN DETERMINING THE PATTERNS OF THE ROMANIAN INTERNATIONAL TRADE

Tania Georgia Viciu, Larisa Mihoreanu, Carmen Costea

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.

 


Keywords


Trade models, Economic development,Trade-creating forces, Commercial advantages, Capital-intensive commodities, Labour-intensive commodities

Full Text:

PDF HTML

References


Arvis, J.F., Duval, Y., Shepherd, B., Utoktham, C. (2013). Trade Costs in the Developing World, Policy Research Working Paper, The World Bank, Poverty Reduction and Economic Management Network, International Trade Department.

Batra, A. (2006). India’s Global Trade Potential: The Gravity Model Approach. Global Economic Review, 35, p. 327-361.

Bergstrand, J.H. (1990). The Heckscher-Ohlin-Samuelson Model, The Linder Hypothesis and the Determinants of Bilateral Intra-Industry Trade. The Economic Journal, 100, p.1216-1229.

Blejer, M.J. (1978). Income Per Capita and the Structure of Industrial Exports: An Empirical Study. The Review of Economics and Statistics, 60, p. 555-561.

Bohman, H. and Nilsson, D. (2007). Market Overlap and the Direction of Exports – a new approach of assessing the Linder hypothesis. CESIS Electronic Working Paper Series, http://www.infra.kth.se/cesis/cesis/publications/index.htm.

Carmen Costea, (2008), Application of Tuncay's language teacher model to business-customer relations, International Journal of Modern Physics C 19, 267, DOI: 10.1142/S0129183108012054

Choi, C. (2002). Linder Hypothesis revisited. Applied Economics Letters, 9, pp. 601-605.

Chow, P. and Yochanan, M.K. (1999). A test of the Linder hypothesis in the Pacific NIC trade 1965-1990. Applied Economics, 31, p. 175-182.

Fillat-Castejon, C. and Serrano-Sanz, J.M. (2004). Linder Revisited: Trade and Development in the Spanish Economy. International Review of Applied Economics, 18, p. 323-348.

Haar, L.N. (2010). Industrial Restructuring in Romania from a Bilateral Trade Perspective: Manufacturing Exports to the EU from 1995 to 2006. Europe-Asia Studies, 62, p. 779-805.

Krugman, P. (1980). Scale Economies, Product Differentiation, and the Pattern of Trade. The American Economic Review, 70, p. 950-959.

Leontief, W. (1953). Domestic Production and Foreign Trade; The American Capital Position Re-Examined. Proceedings of the American Philosophical Society, 97, p. 332-349.

Linder, S.B. (1961). An Essay on Trade and Transformation. Stockholm: Almqvist & Wicksell Publishing.p.143-156

Mardas, D. and Nikas, K. (2008). Economic Integration and Intra-industry Trade Between the European Community and the Western Balkan Countries. Transition Studies Review, 15, p. 511-523.

Markusen, J.R. (1986). Explaining the Volume of Trade: An Eclectic Approach. The American Economic Review, 76, p. 1002-1011.

Markusen, J.R. (2013). Putting per-capita income back into trade theory, Journal of International Economics, 90:2, p. 255-265.

Larisa Mihoreanu, Laura Oana, Tania Georgia Viciu (2014) Analysing Wellbeing At The Crossroads Of Socioeconomic Growth And Business Ethics World Review Of Entrepreneurship, Management And Sustainable Development, 2015, Vol.11, Issue 2/3, p.282-295

McPherson, M.A., Redfearn, M.R., Tieslau, M.A. (2001). International trade and developing countries: an empirical investigation of the Linder hypothesis. Applied Economics, 33, p. 649-657.

Ricardo, D. (1817). On the Principles of Political Economy and Taxation. London: John Murray Publishing.p.14

Rybczynski, T. M. (1955). Factor Endowment and Relative Commodity Prices. Economica, 22, p. 336–341.

Romanian Ministry of Economy Trade and Business Environment, 2013. The Evolution of Foreign Trade, http://www.dce.gov.ro/ Date accessed: 31 Jan. 2016

Smith, A. (1776). An Inquiry into the Nature and Causes of the Wealth of Nations. London: W. Strahan and T. Cadell Publishing.

Stolper, W.F. and Samuelson, P.A. (1941). Protection and Real Wages. Review of Economic Studies, 9, p. 58–73.

Tang, D. (2005). Effects of the Regional Trading Arrangements on Trade: Evidence from the NAFTA, ANZCER and ASEAN Countries, 1989-2000. The Journal of International Trade & Economic Development, 14, p. 241-265.

World Bank (2013). The World Bank Data, Economic Policy & External Debt Indicators, http://data.worldbank.org/ Date accessed: 31 Jan. 2016




DOI: https://doi.org/10.26458/jedep.v5i1.130

Refbacks

  • There are currently no refbacks.




Copyright (c) 2016 Tania Georgia Viciu, Larisa Mihoreanu, Carmen Costea

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.


INDEXING

 

Environmental Science Journals,<br /> Natural Science Journals, SciTech Journals, Illustrata: Natural Science ICV 2015: 81.51DOAJREPEC   citefactor researcherid ECONBIZ ERIHPLUS     Sherpa" researchbib Gale Base    

Ulrichs     Stanford    

cornelniv    oclc     Toc     google
    ez3     ilinois sjif ohs 




Administred: Rocsana B. Manea Tonis

http://icourses.wix.com/itmk 

.