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2016
DOI: 10.17221/153/2015-agricecon
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Country and industry specific determinants of intra-industry agri-food trade in the Baltic Countries

Abstract: Th e article analyses the country and industry specifi c determinants of the horizontal and vertical intra-industry agri-food trade between the Baltic Countries and the European Union in 1999-2013. Results obtained by the GMM panel model estimations suggest that distance is negatively related to IIT, implying that geographical distance is an obstacle for intra-industry agri-food trade. Moreover, factor endowments are ambiguously related to IIT as land is found to be negatively, while labour and machinery to be… Show more

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Cited by 9 publications
(5 citation statements)
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References 46 publications
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“…However, in our analysis, distance has a positive and statistically significant impact at 5% level on Nigeria's agri-food exports with the EU, only in our baseline model. This finding contradicts prior studies (Castillo et al 2016;Jambor et al 2016;Osabuohien et al 2019). Distance in agricultural trade reflects transportation costs as well as the differences in climatic and cultivation conditions between trading partners.…”
Section: Resultscontrasting
confidence: 89%
“…However, in our analysis, distance has a positive and statistically significant impact at 5% level on Nigeria's agri-food exports with the EU, only in our baseline model. This finding contradicts prior studies (Castillo et al 2016;Jambor et al 2016;Osabuohien et al 2019). Distance in agricultural trade reflects transportation costs as well as the differences in climatic and cultivation conditions between trading partners.…”
Section: Resultscontrasting
confidence: 89%
“…The economic mass has been represented in various ways in the gravity model, that is, some researchers take the GDP of the importer alone as a determinant of market size, similar to Chu and Ahsan (2014). In our study, similar to some researchers, we indicate the product of the GDP of exporters and importers as a market size proxy for separating demand and supply effects (Jambor et al, 2016;Kea et al, 2019). Our study predicts positive signs from the GDP variable.…”
Section: Resultssupporting
confidence: 83%
“…Many researchers have used the gravity model as a research base to look at the factors that influence trade flows, with the dependent variable export of a commodity and the independent variable in the form of GDP of both countries and geographical distance (Jambor et al 2016). However, only slight researchers have begun to adjust the model to better represent their results, for example, by replacing geographical distance with economic distance and nominal GDP with real GDP.…”
mentioning
confidence: 99%