MACROECONOMIC DETERMINANTS OF ROMANIAN INTRA-INDUSTRY TRADE. A STUDY OF KEY CONTRIBUTORS TO EXPORT SALES

Irina-Marilena  BAN

Authors

Irina-Marilena BAN Faculty of Economics and Business Administration, Babeș-Bolyai University, Cluj-Napoca, Romania. Email: irina.ban@econ.ubbcluj.ro. https://orcid.org/0000-0002-3075-2145

Keywords:

intra-industry trade, OLS with logistic transformation, fractional logit regression model

Abstract

This study examines the main macroeconomic determinants of intra-industry trade between Romania and its major trading partners during the period 2001-2012. Using data at four-digit level for eight sections and based on a static panel data approach, we analyzed the country-specific characteristics. The results of the econometric analysis confirm the theoretical background. According to our estimations, the intra-industry trade is positively correlated to market size and negatively to differences in per-capita income and geographical distance, but there are also other specific factors of influence for each sector.

JEL classification: F1, C2

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