International trade and developing countries: an empirical investigation of the Linder hypothesis

Citation
Ma. Mcpherson et al., International trade and developing countries: an empirical investigation of the Linder hypothesis, APPL ECON, 33(5), 2001, pp. 649-657
Citations number
34
Categorie Soggetti
Economics
Journal title
APPLIED ECONOMICS
ISSN journal
00036846 → ACNP
Volume
33
Issue
5
Year of publication
2001
Pages
649 - 657
Database
ISI
SICI code
0003-6846(200104)33:5<649:ITADCA>2.0.ZU;2-E
Abstract
This paper presents empirical evidence in support of the Linder hypothesis for five of the six East African developing countries studied here: Ethiopi a, Kenya, Rwanda, Sudan and Uganda. This finding implies that these countri es trade more intensively with others who have similar per capita income le vels, as predicted by Linder. The contributions of this research are three- fold. First, new information is provided on the Linder hypothesis by focusi ng on developing countries. Second, this is one of very few analyses to cap ture both time-series and cross-section elements of the trade relationship by employing a panel data set. Third, the empirical methodology used in the analysis corrects a major shortcoming in the existing literature by using a censored dependent variable in estimation.