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Country-Specific Determinants of Horizontal and Vertical Intra-industry Agri-food Trade: The Case of the EU New Member States

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  • Attila Jambor

Abstract

type="main" xml:id="jage12059-abs-0001"> Intra-industry trade (IIT) has become a widespread phenomenon with a growing role in international trade, though agricultural trade is usually neglected in empirical works. This article identifies the determinants of horizontal and vertical intra-industry agri-food trade between New Member States (NMS) and the EU-27 in 1999–2010, by applying static and dynamic models with different specifications to panel data. Results show that IIT is mainly of a vertical nature in the NMS, though the majority of NMS export low quality agri-food products to EU-27 markets. Factor endowments are negatively related to agri-food horizontal intra-industry trade (HIIT), but positively to vertical intra-industry trade (VIIT). Economic size is positively and significantly related to both types of IIT, while distance and IIT are found to be negatively related in both cases. Results also suggest that HIIT and VIIT are greater if a New Member State exports agri-food products to another NMS while EU accession has had positive and significant impacts on both HIIT and VIIT, suggesting that economic integration fosters IIT.

Suggested Citation

  • Attila Jambor, 2014. "Country-Specific Determinants of Horizontal and Vertical Intra-industry Agri-food Trade: The Case of the EU New Member States," Journal of Agricultural Economics, Wiley Blackwell, vol. 65(3), pages 663-682, September.
    • Handle: RePEc:bla:jageco:v:65:y:2014:i:3:p:663-682
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    File URL: http://hdl.handle.net/10.1111/jage.2014.65.issue-3
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    Cited by:

    1. Anna Nowak & Renata Kubik, 2019. "Changes in Agricultural Productivity in New and Old Member States of the European Union," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 101-114.
    2. Bojnec, Stefan & Ferto, Imre, 2016. "Patterns and Drivers of the Agri-Food Intra-Industry Trade of European Union Countries," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-22, May.
    3. repec:mth:ijafr8:v:8:y:2018:i:4:p:22-59 is not listed on IDEAS
    4. Patryk Emanuel TOPOROWSKI, 2017. "Did the economic crisis change V4 trade patterns? The case of intra-industry trade," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 8, pages 71-93, December.
    5. Luboš Smutka & Mansoor Maitah & Miroslav Svatoš, 2019. "The Czech Agrarian Trade Comparative Advantages Distribution Based on Value and Volume Approach," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 67(6), pages 1613-1625.
    6. Jenny P. Danna-Buitrago & Rémi Stellian, 2022. "A New Class of Revealed Comparative Advantage Indexes," Open Economies Review, Springer, vol. 33(3), pages 477-503, July.
    7. Sakshi Aggarwal & Debashis Chakraborty, 2021. "Which Factors influence Vertical Intra-Industry Trade in India? Empirical Results from Panel Data Analysis," Working Papers 2154, Indian Institute of Foreign Trade.
    8. Sagnik Bagchi & Surajit Bhattacharyya, 2019. "Country-Specific Determinants of Intra-Industry Trade in India," Foreign Trade Review, , vol. 54(3), pages 129-158, August.
    9. Shinichi Furuzawa & Lily Kiminami, 2017. "Changes in the international specialization of food manufacturing industry in East Asia," Asia-Pacific Journal of Regional Science, Springer, vol. 1(2), pages 359-378, October.
    10. Marcin Pigłowski, 2021. "The Intra-European Union Food Trade with the Relation to the Notifications in the Rapid Alert System for Food and Feed," IJERPH, MDPI, vol. 18(4), pages 1-19, February.

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