Two-way International trade: An econometric analysis

A Cross-Section Analysis of Intra-Industry Trade in the U.S. Processed Food and Beverage Sectors

“…Support for this hypothesis can be found in several previous empirical studies, e.g., Pagoulatos and Sorenson (1975), Greenaway and Milner (1984), and Balassa and Bauwens (1987), among others.…”

“…Although no consistently strong indication of a positive or negative effect of tariffs has been found in previous studies, e.g., Caves (1981), Toh (1982) and Balassa and Bauwens (1987), Pagoulatos and Sorenson (1975) did find support for this hypothesis. Given the level of protection for the food and beverage sectors, it was felt that some form of tariff dispersion measurement was needed in the analysis.…”

Weighting considerations in the measurement and modelling of intra-industry trade

“…Grubel and Lloyd (1975); Greenaway (1983); Hesse (1974) and by cross-section 296 C. Milner econometric studies (e.g. Pagoulatos and Sorenson (1975); Finger and De Rosa (1979); Caves (1981); Toh (1982); Greenaway and Milner (1984) for industry j is…”

“…This is particularly the case where 'barrier to trade' variables (such as distance or tariff variables) are included in the regressions. Of those studies cited earlier Pagoulatos andSorenson (1975), Caves, (1981) and Toh (1982) include such variables. Relationships such as the following are hypothesized:…”

“…This scepticism would appear justified given the mixed nature of the results on distance and tariff variables in these econometric studies. Pagoulatos and Sorenson (1975) obtain for instance a positive sign for their distance variable, while Toh (1982) reports a negative sign. In the case of the tariff level variable the arrangement of signs in these two studies is reversed.…”