Show simple item record

dc.contributor.authorAllen, Jamesen_NZ
dc.identifier.citationAllen, J. (2005, October). A sure thing a seemingly unrelated test of international trade models for New Zealand (Dissertation, Bachelor of Commerce with Honours). Retrieved from
dc.description.abstractThis dissertation empirically tests the extent to which three alternative trade theories explain the pattern of New Zealand's international trade. This is accomplished by nesting a gravity equation, the Heckscher-Ohlin model and Linder's overlapping demands hypothesis in an econometric model. The model is estimated separately for imports and exports over a system of 12 commodity groupings. Due to the similarity between the regressions over the 12 commodities, Zellner's (1962) Seemingly Unrelated Regression Equations (SURE) estimation method is employed. The results indicate that, the gravity model has the most explanatory power and shows only weak support for the Heckscher-Ohlin theorem and the overlapping demands hypothesis.en_NZ
dc.subjectalternative trade theoriesen_NZ
dc.subjectNew Zealand's international tradeen_NZ
dc.subjectgravity equationen_NZ
dc.subjectHeckscher-Ohlin modeen_NZ
dc.subjectLinder's overlapping demands hypothesisen_NZ
dc.subjectSeemingly Unrelated Regression Equationsen_NZ
dc.subject.lcshHF Commerceen_NZ
dc.subject.lcshHF5601 Accountingen_NZ
dc.subject.lcshH Social Sciences (General)en_NZ
dc.subject.lcshHB Economic Theoryen_NZ
dc.titleA sure thing a seemingly unrelated test of international trade models for New Zealanden_NZ
otago.schoolEconomicsen_NZ of Commerce with Honours of Otagoen_NZ Dissertationsen_NZ
otago.openaccessAbstract Only
dc.description.referencesAnderson J. E. 1979 A Theoretical Foundation for the Gravity Model The American Economic Review 69 (1) Anderson J. E, and Van Wincoop, E. 2001 Gravity with Gravitas; A Solution to the Border Puzzle Working Paper 8079 National Bureau of Economic Research Battersby, B. and Ewing, R. 2005b International Trade Performance: The Gravity of Australia's Remoteness Treasury Working Paper 2005-03 Australian Government Treasury Bergstrand J. H. 1985 The Gravity Equation in International Trade; Some Microeconomic Foundations and Empirical Evidence Review of Economics and Statistics Vol. 67 Breusch, T. and Pagan, A 1979 A simple test for heteroscedasticity and random coefficient variation Econometrica 47 1287 – 1294 Breusch, T. and Pagan, A 1980 The LM test and its application to model specification in econometrics Review of Economic Studies 47, 239 - 254 Central Intelligence Agency The World Factbook [online] Available at: <http://www.cia.govicia/publications/factbook> [Accessed 3 October 2005] Chan, K. K. and Nugent, J. B. 1999 Factor Endowments, Trade Liberalization, and the Future of APEC Trade Patterns Contemporary Economic Policy. 17, (4) Cook, R. D. and Weisberg, S. 1983. Diagnostics for heteroscedasticity in regression Biometrika 70, 1 - 10 Cooperative Association for Internet Data Analysis (CAIDA) Latitude and Longitude of AS Cities – CAIDA:Analysis [online] Available at : <> [Accessed 25 September 2005] Davis, D. and Weinstein D. 1996 Empirical Tests of the Factor Abundance Theory: What Do They Tell Us? Eastern Economic Review Deardoff, A. 1982 The General Validity of the Heckscher-Ohlin Theorem The American Economic Review 72 (4) Dimaranan, B. V. and McDougall, R. A. 2005. Global Trade, Assistance, and Production: The GTAP 6 Data Base. Center for Global Trade Analysis, Purdue University Feenstra, R.C., Markusen, J. R. and Rose, A.K. 2001 Using the gravity equation to differentiate among alternative theories of trade The Canadian Journal of Economics. 34 (2) Friedman, M. 1953 Essays in Positive Economics United States of America. University of Chicago Press Greenaway, D. and Milner, C. 2002 Regionalism and Gravity Research paper series 2002/20 University of Nottingham Gunawardana, P. J. and Hewarathna, R. 2000 The Asian Crisis and Australia-East Asia Trade Flows: A Modified Gravity Approach Discussion Paper Series A 00.13, School of Business, La Trobe University Head, K. 2003 Gravity for Beginners Working Paper, Sander School of Business, University of British Colombia Helliwell, J. F 1999. Exploring the Economics of Language : Gravity Modelling of Trade Flows and the Role of Language In A. Breton New Canadian Perspectives: Exploring the Economics of Language The Department of Canadian Heritage Canada Kohlhagen, S. W. 1977 Income Distribution and "Representative Demand" in International Trade Flows: An Empirical Test of Linder's Hypothesis Southern Economic Journal 44 (1) Krugman P. and Obstfeld M. 2003 International Economics: Theory and Policy Sixth Edition United States of America: Addison Wesley Learner, E. 1980 The Leontief Paradox, Reconsidered The Journal of Political Economy 88 (3) Leontief, W. 1953 Domestic Production and Foreign Trade; The American Capital Position Re-Examined Proceedings of the American Philosophical Society 97 (4) Ramsey, J. B. 1969. Tests for specification errors in classical linear least squares regression analysis. Journal of the American Statistical Association 71, 389 – 390 Shapiro, S. S and Francia, R. S. 1972 An approximate analysis of variance test for normality. Journal of American Statistical Association 67, 215 - 216 Smith, C. 2002 Currency unions and gravity models revisited. Reserve Bank of New Zealand Discussion Paper DP2002/07 Sohn, C. 2005 Does the Gravity Model Fit Korea's Trade Patterns? Implications for Korea's FTA Policy and North-South Korean Trade Korea Institute for International Economic Policy and Yokohama National University StataCorp Stata: Reference Guide Release 8 United States of America: StataCorp Subasat, T. 2003 What Does the Heckscher-Ohlin Model Contribute to International Trade Theory? A Critical Assessment Review of Radical Economics 35 (2) Vancauteren, M. and Weiserbs, D. 2005 Intra-European Trade of Manufacturing Goods: An Extension of the Gravity Model Discussion Paper, poles d'attraction interuniversitaires PAI P5/21) Woolridge, J. M. 2003 Introductory Econometrics: A Modern Approach 2nd Edition United States of America: Thomson Learning World Trade Organisation Trade Statistics [online] Available at < e.htm> [Accessed 6 October 2005] Zellner, A. 1962 An Efficient Method of Estimating Seemingly Unrelated Regressions and Tests for Aggregation Bias Journal of the American Statistical Association. 57 (298) 348- 368 Baltagi, B. H. 1995 Econometric Analysis of Panel Data England: John Wiley & Sons Ltd. Chapters 6 & 7 Battersby, B. and Ewing, R. 2005a Measuring recent trends in Australia's economic remoteness Domestic Economy Division and Macroeconomic Policy Division, Australian Government Treasury Cuthbertson, K. and Hall, S. G. & Taylor, M. P. 1992 Applied Econometric Techniques Great Britain: Philip Allan Gujarati, D. 1999 Essentials of Econometrics 2nd Edition United States of America: Irwin/McGraw Hill Helpman, E. 1984 The Factor Content of Foreign Trade The Economic Journal. 94 (373) Hong, W. 2005 International Trade: A Provisional Lecture Note Seoul National University. Chapters 6 & 8 Learner, E. 1987 Paths of Development in the Three-Factor, n-Good General Equilibrium Model The Journal of Political Economy 95 (5) Neary, J. P. 2004 The Stolper-Samuelson Theorem In McCusker, J. J. Encyclopedia of World Trade Since 1450 New York: Macmillan Reference Ratnayake, R. and Townsend, B. 1999 The Geographical Pattern of New Zealand's International Trade: An Application of the Gravity Model New Zealand Economic Papers 33(2) : 27 – 38 Rybczynski, T. Nov 1955 Factor Endowment and Relative Commodity Prices Economica 22 (88) Sto1per, W. and Samuelson, P. 1941 Protection and Real Wages The Review of Economic Studies 9 (1) Tamor, K. 1987 An empirical examination of the factor endowments hypothesis The Canadian Journal of Economics. 20 (2) Yarbrough, B. and Yarbrough, R. 2003 The World Economy: Trade and Finance United States of America: Thomson Learning .en_NZ
 Find in your library

Files in this item


There are no files associated with this item.

This item is not available in full-text via OUR Archive.

If you would like to read this item, please apply for an inter-library loan from the University of Otago via your local library.

If you are the author of this item, please contact us if you wish to discuss making the full text publicly available.

This item appears in the following Collection(s)

Show simple item record