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A Cross-Section Analysis Of The Intra-Industry Trade In The U.S. Processed Food And Beverage Sectors

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  • Hartman, Darcy A.
  • Henderson, Dennis R.
  • Sheldon, Ian M.

Abstract

This paper analyzes the determinants of variation across industries in levels of intra-industry trade (IIT) for a sample of thirty-six U.S. processed food and beverage industries in 1987, previous studies of intra-industry trade having focused on industry characteristics in the manufacturing sectors. The determinants predicted by IIT theory are measures of product differentiation, economies of scale, and imperfect competition; the results of this analysis indicate that IIT variation across the food and beverage industries is positively related to product differentiation, economies of scope, and similarity of tariff barriers among trade partners, but negatively related to industry concentration.

Suggested Citation

  • Hartman, Darcy A. & Henderson, Dennis R. & Sheldon, Ian M., 1993. "A Cross-Section Analysis Of The Intra-Industry Trade In The U.S. Processed Food And Beverage Sectors," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(2), pages 1-10, October.
    • Handle: RePEc:ags:arerjl:31555
    DOI: 10.22004/ag.econ.31555
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    Cited by:

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    2. Handy, Charles R., 1993. "U.S. Foreign Investment and Trade Prospects in Mexico's Agribusiness," Occasional Papers 233160, Regional Research Project NC-194: Organization and Performance of World Food Systems.

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