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Title: |
A Re-examination of the Linder Hypothesis: A
Random-Effects Tobit Approach |
| Author: |
McPherson, M.
A.; Redfearn, M. R.; Tieslau, M. A. |
| Author
Affiliation: |
U N TX |
| Source: |
International Economic Journal, Autumn 2000, v. 14, no. 3, pp. 123-136 |
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Publication Date: |
Autumn 2000 |
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Abstract: |
This paper examines one of the main
theories of international trade, the Linder hypothesis, using data from
the OECD countries. The paper makes two primary contributions. First,
significant empirical evidence is found in support of Linder' s
hypothesis regarding demand similarity for 18 of the 19 OECD countries
under investigation here. Second, the use of a censored dependent
variable in this analysis corrects a major methodological shortcoming in
the existing literature by including data on all potential trading
partners, even when the given OECD country has a zero or negative desire
to export to that potential trading partner. |
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