Intra-Industry Trade in the Medical and Optical Instruments Industry: A Panel Data Analysis

Abstract

This paper analyses the determinants of intra-industry trade (IIT) in the Portuguese medical and optical sector using a static and dynamic panel data analysis. The results suggest that IIT in medical and optical instruments occurs more frequently among countries that are similar in terms of relative factor endowments and are members of the same regional integration agreement. Moreover, this trade increases if the partners are geographically close. © 2013 Juraj Dobrila University of Pula, Department of Economics and Tourism "Dr. Mijo Mirkovic".