Determinants of South Africa-US intra-industry trade in services: a wild bootstrap dynamic panel data analysis

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Periodical article

Title:	Determinants of South Africa-US intra-industry trade in services: a wild bootstrap dynamic panel data analysis
Authors:	Sichei, Moses Muse Harmse, Chris Kanfer, Frans
Year:	2007
Periodical:	South African Journal of Economics
Volume:	75
Issue:	3
Pages:	521-539
Language:	English
Geographic terms:	South Africa United States
Subjects:	international trade service industries 1990-1999
External link:	https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1813-6982.2007.00136.x
Abstract:	The authors empirically identify factors that determine South Africa-US intra-industry trade (IIT) in selected services during the period 1994-2002. They utilize 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 authors also show that US foreign direct investment in South Africa positively contributes to the unaffiliated IIT in services. Bibliogr., notes, ref., sum. [Journal abstract]