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Theoretical and Applied Economics
No. 6 / 2011 (559)

Intra-Industry Trade in Tourism Services

Nuno Carlos LEITÃO
Polytechnic Institute of Santarém and CEFAGE- UE, Portugal

Abstract. Usually the tourism flows are explained by demand, economic growth, and revealed comparative advantage (neoclassic trade theory).

This manuscript examines the link between intra-industry trade and international tourism flows. We have examined the Portuguese intra-industry trade in this sector. The analysis apply the static (Grubel and Lloyd) and dynamic index (Brülhart). Our results show that the tourism services are important for a small economy such as Portugal. The intra-industry trade is very significant between Portugal and the following countries: Spain, USA, Italy, Greece, Turkey and Canada.

Keywords: tourism flows; intra-industry trade; Grubel and Lloyd index; Brülhart index, Portugal.

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