Linder hypothesis

Krugman sought to provide an alternative to the Linder hypothesis.

The empirical validity of the Linder hypothesis is somewhat unclear.

The 'Linder hypothesis' (demand-structure hypothesis) is a conjecture in economics about international trade patterns.

The Linder hypothesis presents a demand based theory of trade in contrast to the usual supply based theories involving factor endowments.

One such trade model, the Linder hypothesis, suggests that goods are traded based on similar demand rather than differences in supply side factors (i.e..

Examinations of the Linder hypothesis have observed a "Linder effect" consistent with the hypothesis.

"A Re-examination of the Linder Hypothesis: a Random-Effects Tobit Approach."

The Linder hypothesis is an economics conjecture about international trade patterns: The more similar the demand structures of countries, the more they will trade with one another.

For instance, the Linder hypothesis states that demand plays a more important role than comparative advantage as a determinant of trade-with the hypothesis that countries which share similar demands will be more likely to trade.