Validity of Linder Hypothesis in Bric Countries

Abstract

In this study, the theory of similarity in preferences (Linder hypothesis) has been introduced and trade in BRIC countries has been examined whether the trade between these countries was valid for this hypothesis. Using the data for the period 1996 – 2010, the study applies to panel data analysis in order to provide evidence regarding the empirical validity of the Linder hypothesis for BRIC countries’ international trade. Empirical findings show that the trade between BRIC countries is in support of Linder hypothesis.

Keywords

• BRIC countries
• Linder Hypothesis
• Panel Data Analysis