Determinants of South Africa-US intra-industry trade in services : a wild bootstrap dynamic panel data analysis
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Date
Authors
Sichei, Moses Muse
Harmse, Chris
Kanfer, Frans H.J.
Journal Title
Journal ISSN
Volume Title
Publisher
Blackwell
Abstract
The study attempts to empirically identify factors that determine South Africa–US intra-industry trade (IIT) in selected services during the period 1994-2002. The study utilises Liu-Davidson-Flachaire wild bootstrap, which is robust to heteroscedasticity and provides estimates of the degree of parameter bias. The empirical results, in principle, show that South Africa–US IIT in the selected services is determined by factors similar to goods-based "North-South" IIT studies. Specifically, differences in per capita income and differences in market size negatively affect IIT. The study also indicates that US foreign direct investment in South Africa positively contributes to the unaffiliated IIT in services.
Description
Keywords
Intra-industry trade, Dynamic panel data, Wild bootstrap
Sustainable Development Goals
Citation
Sichei, MM, Harmse, C & Kanfer, F 2007, ‘Determinants of South Africa-US intra-industry trade in services : a wild bootstrap dynamic panel data analysis’, The South African Journal of Economics, vol. 75, no. 3, pp. 521–539. [http://www.blackwellpublishing.com/journal.asp?ref=0038-2280&site=2]