Intra-Industry Trade and Specialization in Processed Agricultural Products: The Case of the US and the EC

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

“…However, low values for total IIT (the sum of vertical and horizontal IIT) suggest that IIT prevails in the agri-food trade of these countries with the EU in the analysed period. These fi ndings are consistent with the results of previous research (Fertő, 2005;Jámbor, 2014) and with earlier studies indicating that proportion of the IIT was higher for food products involving a greater degree of processing (McCorriston and Sheldon, 1991;Qasmi and Fausti, 2001). …”

“…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). 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).…”

“…Despite the importance of the topic, most literature is focused on IIT of industrial products, with agricultural produce usually neglected in empirical works (McCorriston and Sheldon, 1991), possibly because agricultural markets are assumed to be competitive. 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.…”

The application of trade and growth theories to agriculture: a survey

“…However, as agricultural production was de¢ned as generally as`food and live animals', it was suggested that these outcomes were mainly due to the high levels of product aggregation in the data. McCorriston and Sheldon (1991) examined IIT levels in a sample of ten high-value processed food and agricultural products for the United States and the EU. The results indicate that in 1986 a large part of this trade was of an intra-industry trade nature and this part was of a similar order of magnitude to other industrial goods.…”

A Cross-Section Analysis of Intra-Industry Trade in the U.S. Processed Food and Beverage Sectors

“…(For a thorough discussion of the food and beverage industries, see Connor, et al, 1985, andSutton, 1991). In addition, HT has been documented in the processed food and beverage industries (McCorriston and Sheldon, 1991;Hart and McDonald, 1992;Hirschberg, et al, 1992), As welfare gains from greater product variety, increased realization of economies of scale, and increased competition are predicted by the theories of IIT, a priori, itwould seem important to measure the extent of IIT in the U.S. processed food and beverage industries, and to examine its causes in these industries. While Hirschberg, et al, have studied the extent to which country characteristics explain the level of IIT in these industries over time, this study focusses on characteristics that determine the level of IIT across industries for a specific point in time for the United States.…”