Through the estimation of an econometric panel data model, this paper considers the capacity of some of the hypotheses formulated in recent dynamic models of trade and economic growth to explain the bilateral trade of OECD countries. Amongst other findings, our study suggests that the larger a country´s endowment of capital, both tangible and intangible (human and technological capital), in relation to that of its trade partners, the better the export/import ratio of its bilateral trade. It also shows that direct investment enhances the export/import ratio with the host country.

Key words: trade, tangible capital, intangible capital, foreign investment, OECD.
JEL classification: F10, F14.