Work detail

Emprical Analysis of the Linder Hypothesis: The case of Japan (1980 – 2007)

Author: Bc.Anežka Fialová
Year: 2010 - summer
Leaders: Ing. Vilém Semerák M.A., Ph.D.
Consultants:
Work type: Bachelors
Language: English
Pages: 63
Awards and prizes:
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Abstract: The aim of this work is to test empirically the validity of the Linder Trade Hypothesis for the case of Japan in the period 1980-2007. While the theoretical part presents summary of Linder Trade Theory as well as an overview of empirical studies dealing with Linder Hypothesis, for the purpose of the empirical part a gravity type model for panel data was constructed. For estimation in GRETL software the fixed effect method with HAC robust standard errors covariance matrix was used. As the main innovation in the testing approach the author considers two facts. Firstly it is the very nature of Japan itself that, as an island country separated geographically from its trading partners, offers an ideal object to test the Linder Hypothesis, because the main weakness of the precedent tests has been the inability to deal with geographical clustering. And secondly it is the method of testing that uses panel data, which helps to account for individual features of partner countries. The study does not come with any definite results as it tackles low statistical significance of estimates, but it provides reader with thorough theoretical summary of the problem.

Downloadable: Bachelor Thesis of Fialová

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