The Test of Heckscher-Ohlin-Samuelson Theory in Intra-industry Trade of Iran (a Dynamic Panel Approach)

Document Type : Research Paper

Authors

Abstract

The study of intra-industry trade is crucial for the countries who seek to reach the real comparative advantages. For the expansion and benefiting from international trade an optimal trade structure is required. For this purpose recognizing and forcing the comparative advantages in our international trade is necessary. In this paper we study the effects of Heckscher-Ohlin-Samuelson (H-O-S) variables on intra-industry trade of Iran and MENA region countries in 1378-1386 period. For this purpose a dynamic GMM method is applied. The results show that comparative advantages are time invariant. Furthermore among the (H-O-S) variables human capital has the least effect on intra-industry trade in Iran.