Driving forces of vertical intra-industry trade in Europe 1996–2005

Jensen, Lars Christian; Lüthje, Teit

doi:10.1007/s10290-009-0022-5

Cited by 29 publications

(32 citation statements)

References 29 publications

(44 reference statements)

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“…However, the results are similar to previous studies (e.g. Blanes and Martin, 2000;Jensen and Lüthje, 2009) showing that differences in land have a rather negative impact on vertical IIT. Moreover, proximity to markets still remains as one of the most important explanations for IIT specialisation (McCorriston and Sheldon, 1991).…”

Section: Resultssupporting

confidence: 92%

Country- and industry-specific determinants of intra-industry trade in agri-food products in the Visegrad countries

Jámbor¹

2015

Stud. Agr. Econ.

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The article analyses country-and industry-specifi c determinants of horizontal and vertical intra-industry trade (IIT) in agri-food products between the Visegrad countries (Czech Republic, Hungary, Poland and Slovak Republic) and the European Union in the period 1999-2013. The results show that IIT is mainly of a vertical nature in the Visegrad countries, though the majority of their exports consist of low quality/value-added agri-food products to European markets. The results obtained by generalised method of moments (GMM) panel model estimations suggest that factor endowments and distance are mainly negatively related to IIT, while product differentiation was found not to foster two-way trade of quality-differentiated goods. All model runs show a negative relationship between productivity as well as foreign direct investment and IIT.

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Section: Resultssupporting

confidence: 92%

Country- and industry-specific determinants of intra-industry trade in agri-food products in the Visegrad countries

Jámbor¹

2015

Stud. Agr. Econ.

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“…This variable also extends as an essential determinant to VIIT in tourism. Durkin and Krygier (2000), Gabrisch (2006), and Jensen and Lüthje (2009) overlap, as specified 39 in our article, shows a positive effect exclusively on VIIT (while it is insignificant for HIIT) in tourism and supports the conclusions of the above mentioned articles. This important result supports the separation of horizontal and vertical determinants of IIT in the tourism sector.…”

Section: Resultssupporting

confidence: 88%

“…The approach we use has the following distinctive features: -In the literature on the subject, most studies investigate trade between one country and a set of partners. The relationship between GDP per capita (used as a proxy for factor endowments, for instance) and VIIT may be ambiguous as it depends on the trading partner (Jensen and Lüthje, 2009;M. Cabral et al, 2013).…”

Section: Introductionmentioning

confidence: 99%

“…-On the demand side, in addition to differences in income levels, we introduce the incomedistribution overlap from the theoretical model of Flam and Helpman (1987). The econometric studies by Durkin and Krygier (2000), Gabrisch (2006), and Jensen and Lüthje (2009) are among the few that assign a central role to differences in income distribution in explaining VIIT. However, none of these investigations deals with the tourism sector or with services in general.…”

Section: Introductionmentioning

confidence: 99%

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Intra-tourism trade, income distribution and tourism endowment: an econometric investigation

2015

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Empirical investigation (Nowak et al., 2012) points out that vertical intraindustry trade (VIIT) in Europe is the dominant type of intra-industry trade (IIT) in the tourism sector. This article is the first in tourism literature to test separately the determinants of vertically and horizontally differentiated services, using the most recent models in the theory of IIT. We examine bilateral trade among all trading partners of the sample of European countries, covering the period 2000 to 2008. We show that differences in Gross Domestic Product (GDP) per capita and the incomedistribution overlap, as well as cultural proximity, are the most significant driving forces behind VIIT for European countries. Geographic distance has a negative effect, whereas specific tourism endowments and relative size of the economies are less conclusive. These results confirm theory predictions and most of the empirical findings related to the pattern of VIIT for the manufacturing sector. As expected, we find that determinants of VIIT cannot explain horizontal intra-industry trade (HIIT) in tourism. We suggest two alternative methods of estimation: Generalized Least Squares (GLS) logistic function and the fractional logit estimator. We conclude that there are common factors explaining IIT in the manufacturing and tourism trades.

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“…According to their results, the country size, the income per capita differences and the geographic distance were found to be important factors for IIT, especially for the horizontal IIT. Jensen and Lüthje (2009) analysed driving forces of VIIT in Europe and identified the production size, the geographical proximity, the average income per capita and the income distribution overlap as the major ones. It was proven that countries characterized by being on a high economic level and by being large economies had a higher bilateral VIIT with each other than with other countries.…”

Section: Empirical Evidencementioning

confidence: 99%

Country and industry specific determinants of intra-industry agri-food trade in the Baltic Countries

Jámbor¹,

Balogh²,

Kucsera³

2016

AGR ECON-CZECH

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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 positively related to both sides of the IIT. Results also show that product diff erentiation fosters two way trade of the quality-diff erentiated goods as a positive relationship exists between the agricultural employment and IIT. As to productivity, all model runs show a negative relationship for HIIT but positive for VIIT, implying that low-quality product exports dominate the agri-food trade of the Baltic Countries. Furthermore, FDI was also found to have a negative relationship with IIT, suggesting that foreign capital does not foster IIT.

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Driving forces of vertical intra-industry trade in Europe 1996–2005

Cited by 29 publications

References 29 publications

Country- and industry-specific determinants of intra-industry trade in agri-food products in the Visegrad countries

Country- and industry-specific determinants of intra-industry trade in agri-food products in the Visegrad countries

Intra-tourism trade, income distribution and tourism endowment: an econometric investigation

Country and industry specific determinants of intra-industry agri-food trade in the Baltic Countries

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