Horizontal intra-industry trade in agri-food products in the enlarged European Union

Fertő, Imre

doi:10.7896/j.1425

Cited by 6 publications

(6 citation statements)

References 25 publications

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“…Moreover, proximity to markets still remains as one of the most important explanations for IIT specialisation (McCorriston and Sheldon, 1991). As to the results on industry-specifi c determinants, the negative sign on VPD is contrary to the majority of the empirical literature (Greenaway et al, 1995;Crespo and Fontoura, 2004;Ekanayake and Veeramachenenim, 2009), while the fi ndings on productivity and FDI are more or less in line with the majority of the literature (Török and Jámbor, 2013;Fertő, 2015).…”

Section: Resultsmentioning

confidence: 78%

“…However, recent studies support the view that agricultural markets can be characterised by imperfect competition (Sexton, 2013) and IIT has an increasing role in agricultural trade for both developed and developing countries (e.g. Wang, 2009;Leitão, 2011;Rasekhi and Shojaee, 2012;Varma, 2012;Fertő, 2015). Moreover, most research is focused on a single country and simply neglects the importance of horizontal/vertical distinction of IIT.…”

Section: Introductionmentioning

confidence: 99%

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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: Resultsmentioning

confidence: 78%

Section: Introductionmentioning

confidence: 99%

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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“…Steve McCorriston and Ian Sheldon [1991], when investigating trade in processed agricultural products of the US and the EU, found a greater intensity of intra-industry trade in the case of the EU. The role of intra-industry trade in EU agri-food trade on the global market was also analysed by Štefan Bojnec and Imre Fertő [2016], while this trade within the Single European Market was investigated by Imre Fertő [2015] andAttila Jámbor [2014]. However, those authors did not study bilateral relations of the US and the EU.…”

Section: Introductionmentioning

confidence: 99%

Intensity and Structure of Intra-Industry Trade in Agri-Food Products Observed in Polish and Eu Foreign Trade With the Us

Pawlak

2019

Annals PAAAE

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The aim of this paper was to investigate the intensity and determine the type of intra-industry trade in agri-food products of Poland and the EU with the US. Analysis was based on data coming from the Comext-Eurostat database applying the 6-digit HS classification in 2007 and 2018. The intensity of intra-industry trade was established using the Grubel-Lloyd index, taking the diversification of intra-industry trade into horizontal, high-quality vertical, and low-quality vertical trade into consideration. The individual types were determined applying the criteria of similarity in unit values in exports and imports, proposed by David Greenaway et al. [1994]. Analysis showed that trade in agri-food products of Poland and the EU with the US developed mainly following a model of inter-industry specialisation. Intra-industry trade was observed primarily in trade in highly processed products. Analyses of EU trade with the US indicate the greatest role of intra-industry trade in high quality differentiated products, which may hardly be supplemented by other goods, while in Polish trade with the US it was vertical trade in low quality goods, which may be relatively readily replaced by products coming from other countries, in turn potentially leading to the loss of Poland’s share in the target market.

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“…Hummels and Levinsohn (1995) argued that per capita income differences as a proxy for factor endowments is appropriate only when the number of factors is limited to two and all goods are traded. Ferto (2013) notes that, despite of these limitations of use of the GDP per capita, it became a popular and dominating proxy for factor endowments in empirical literature. However, according to Ferto (2013) the nature of factor endowments may play also important role.…”

Section: Methodology and Datamentioning

confidence: 99%

“…Ferto (2013) notes that, despite of these limitations of use of the GDP per capita, it became a popular and dominating proxy for factor endowments in empirical literature. However, according to Ferto (2013) the nature of factor endowments may play also important role. Thus, it is necessary to use more variables to consider various aspects of factor endowments including physical, technological and human capital.…”

Section: Methodology and Datamentioning

confidence: 99%

An Analysis of the Structure and the Determinants of Intra-industry Trade in Agri-food Products: Case of India and Selected FTAs

Varma

Ramakrishnan

2014

Millennial Asia

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The growing evidence of intra-industry trade (IIT) in integrated markets has provided sufficient justification for trade in countries with similar endowments. While several studies have been undertaken looking at manufacturing and industrial goods, this article analyzes the structure and determinants of trade in agri-food products between India and members from its selected Free Trade Agreements (FTAs)—the South Asian Preferential Trade Agreement (SAFTA) and Association of Southeast Asian Nations (ASEAN). It is focused on agri-food products as the IIT literature in general is more focused on manufacturing products. The analysis found that India’s trade with partner countries is predominantly in the form of IIT. Nonetheless the relative IIT was found higher for countries such as Bhutan, Bangladesh and Nepal among SAFTA members and for Singapore among selected ASEAN members. The econometric analysis using to bit model showed that the free trade agreement had a positive impact on IIT. The empirical analysis further revealed that similarities in demand and agricultural-related factor endowments have a positive impact on IIT. Nonetheless macro variables from the supply side—GDP and per capita GDP—showed that the higher the dissimilarities the higher the IIT. The negative impact of increased average size on IIT is justifiable on account of the fact that the exploitation of scale advantages is lower for agri-food products as compared to other manufacturing products.

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Horizontal intra-industry trade in agri-food products in the enlarged European Union

Cited by 6 publications

References 25 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

Intensity and Structure of Intra-Industry Trade in Agri-Food Products Observed in Polish and Eu Foreign Trade With the Us

An Analysis of the Structure and the Determinants of Intra-industry Trade in Agri-food Products: Case of India and Selected FTAs

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