IDEAS home Printed from https://ideas.repec.org/a/kap/iaecre/v14y2008i4p355-36810.1007-s11294-008-9164-9.html
   My bibliography  Save this article

European Integration, Intra-industry Trade in Vertically Differentiated Products and the Balkan Countries

Author

Listed:
  • Dimitri Mardas
  • Chistos Nikas

Abstract

The aim of this paper is to examine the relation between the integration process and the intensity of intra-industry trade between two countries of different levels of development. Our theoretical model and results indicate that trade liberalization and the establishment of the Free Trade Areas between the Balkan countries and the EC have led to the growth of the intra-industry trade between Greece—EC member state—and those countries. The main instruments of this process have been the Europe Agreements and the Stabilization and Association Agreements between the Balkan countries and the EC. The paper presents a model in vertically differentiated products in a Free Trade Area context and proceeds to depict the intensity of intra-industry trade between Greece and the Balkan countries. Copyright International Atlantic Economic Society 2008

Suggested Citation

  • Dimitri Mardas & Chistos Nikas, 2008. "European Integration, Intra-industry Trade in Vertically Differentiated Products and the Balkan Countries," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 14(4), pages 355-368, November.
    • Handle: RePEc:kap:iaecre:v:14:y:2008:i:4:p:355-368:10.1007/s11294-008-9164-9
    DOI: 10.1007/s11294-008-9164-9
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11294-008-9164-9
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11294-008-9164-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. H. Gray & John Martin, 1980. "The meaning and measurement of product differentiation in international trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 116(2), pages 322-329, June.
    2. Balassa, Bela, 1986. "Intra-Industry specialization : A cross-country analysis," European Economic Review, Elsevier, vol. 30(1), pages 27-42, February.
    3. James R. Markusen & Anthony J. Venables, 2021. "The theory of endowment, intra-industry and multi-national trade," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 4, pages 69-94, World Scientific Publishing Co. Pte. Ltd..
    4. H. Gray, 1973. "Two-Way international trade in manufactures: A theoretical underpinning," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 109(1), pages 19-39, March.
    5. James R. Markusen & James R. Melvin, 1981. "Trade, Factor Prices, and the Gains from Trade with Increasing Returns to Scale," Canadian Journal of Economics, Canadian Economics Association, vol. 14(3), pages 450-469, August.
    6. Falvey, Rodney E., 1981. "Commercial policy and intra-industry trade," Journal of International Economics, Elsevier, vol. 11(4), pages 495-511, November.
    7. Rudolf Loertscher & Frank Wolter, 1980. "Determinants of intra-industry trade: Among countries and across industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 116(2), pages 280-293, June.
    8. Antonio Aquino, 1978. "Intra-industry trade and inter-industry specialization as concurrent sources of International Trade in manufactures," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 114(2), pages 275-296, June.
    9. repec:bla:ecorec:v:47:y:1971:i:120:p:494-517 is not listed on IDEAS
    10. Andrea Zaghini, 2005. "Evolution of trade patterns in the new EU member states," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(4), pages 629-658, October.
    11. Caves, Richard E & Williamson, Peter J, 1985. "What Is Product Differentiation, Really?," Journal of Industrial Economics, Wiley Blackwell, vol. 34(2), pages 113-132, December.
    12. Brander, James A., 1981. "Intra-industry trade in identical commodities," Journal of International Economics, Elsevier, vol. 11(1), pages 1-14, February.
    13. Lancaster, Kelvin, 1980. "Intra-industry trade under perfect monopolistic competition," Journal of International Economics, Elsevier, vol. 10(2), pages 151-175, May.
    14. Ethier, Wilfred, 1979. "Internationally decreasing costs and world trade," Journal of International Economics, Elsevier, vol. 9(1), pages 1-24, February.
    15. Marius Brülhart, 1994. "Marginal Intra-Industry Trade: Measurement and Relevance," Economics Technical Papers 942, Trinity College Dublin, Department of Economics.
    16. Kiertisak Toh, 1982. "A cross-section analysis of intra-industry trade in U.S. manufacturing industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 118(2), pages 281-301, June.
    17. Marius Brülhart, 1994. "Marginal intra-industry trade: Measurement and relevance for the pattern of industrial adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(3), pages 600-613, September.
    18. Venables Anthony J. & Rice Patricia G. & Stewart Martin, 2003. "The Geography of Intra-Industry Trade: empirics," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-25, September.
    19. Shaked, Avner & Sutton, John, 1987. "Product Differentiation and Industrial Structure," Journal of Industrial Economics, Wiley Blackwell, vol. 36(2), pages 131-146, December.
    20. Emilio Pagoulatos & Robert Sorensen, 1975. "Two-way International trade: An econometric analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 111(3), pages 454-465, September.
    21. Langhammer, Rolf J. & Schweickert, Rainer, 2006. "EU integration and its implications for Asian economies: What we know and what not," Kiel Working Papers 1264, Kiel Institute for the World Economy (IfW Kiel).
    22. Caves, Richard E, 1981. "Intra-Industry Trade and Market Structure in the Industrial Countries," Oxford Economic Papers, Oxford University Press, vol. 33(2), pages 203-223, July.
    23. Helpman, Elhanan, 1981. "International trade in the presence of product differentiation, economies of scale and monopolistic competition : A Chamberlin-Heckscher-Ohlin approach," Journal of International Economics, Elsevier, vol. 11(3), pages 305-340, August.
    24. Clive Hamilton & Paul Kniest, 1991. "Trade liberalisation, structural adjustment and intra-industry trade: A note," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(2), pages 356-367, June.
    25. David Greenaway & Robert Hine & Chris Milner, 1994. "Country-specific factors and the pattern of horizontal and vertical intra-industry trade in the UK," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(1), pages 77-100, March.
    26. Mary Amiti & Anthony J. Venables, 2002. "The Geography of Intra-Industry Trade," Palgrave Macmillan Books, in: P. J. Lloyd & Hyun-Hoon Lee (ed.), Frontiers of Research in Intra-Industry Trade, chapter 6, pages 87-106, Palgrave Macmillan.
    27. Kamal Saggi, 2018. "Preferential Trade Agreements And Multilateral Tariff Cooperation," World Scientific Book Chapters, in: Kamal Saggi (ed.), Economic Analysis of the Rules and Regulations of the World Trade Organization, chapter 6, pages 127-155, World Scientific Publishing Co. Pte. Ltd..
    28. Kojima, Kiyoshi, 1964. "The Pattern of International Trade Among Advanced Countries," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 5(1), pages 16-36, June.
    29. Greenaway, David & Milner, Chris R, 1983. "On the Measurement of Intra-Industry Trade," Economic Journal, Royal Economic Society, vol. 93(372), pages 900-908, December.
    30. P. J. Lloyd & Hyun-Hoon Lee (ed.), 2002. "Frontiers of Research in Intra-Industry Trade," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-28598-9, December.
    31. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
    32. H. Gray, 1980. "The theory of international trade among industrial Nations," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 116(3), pages 447-470, September.
    33. Langhammer, Rolf J. & Schweickert, Rainer, 2006. "EU integration and its implications for Asian economies: What we do and do not know," Journal of Asian Economics, Elsevier, vol. 17(3), pages 395-416, June.
    34. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
    35. Lloyd, Peter J, 1994. "Aggregation by Industry in High-Dimensional Models," Review of International Economics, Wiley Blackwell, vol. 2(2), pages 97-111, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grigori Fainštein & Aleksei Netšunajev, 2010. "Foreign Trade Patterns Between Estonia and the EU," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(3), pages 311-324, August.
    2. Snjezana Brkic, 2013. "Analysis Of Intra-Industry Trade Between Bosnia And Herzegovina And The Western Balkans," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 11(1), pages 27-43.
    3. repec:kap:iaecre:v:16:y:2010:i:3:p:311-324 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:kap:iaecre:v:14:y:2008:i:4:p:355-368 is not listed on IDEAS
    2. Katrakilidis, Constantinos P. & Mardas, Dimitri, 2011. "Intra-industry Trade in Agricultural Products at intra-EC level: The Impact of the Common Agricultural Policy (CAP) Funds," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(2).
    3. Pittiglio, Rosanna, 2009. "The Intra-industry Trade for a Highincome Country: New Empirical Evidence for Italy," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 62(2), pages 233-254.
    4. Valerija Botrić, 2013. "Determinants of Intra-industry Trade between Western Balkans and EU-15: Evidence from Bilateral Data," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 6(2), pages 7-23, September.
    5. G. Nesdale, 1996. "Tariffs and Intra-Industry Trade," Economics Discussion / Working Papers 96-11, The University of Western Australia, Department of Economics.
    6. Levkovych, Inna, 2011. "Der ukrainische Außenhandel mit Produkten der Agrar- und Ernährungswirtschaft: Eine quantitative Analyse aus Sicht traditioneller und neuer Außenhandelstheorien," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 59, number 109520.
    7. Filippo Reganati & Rosanna Pittiglio, 2005. "Vertical Intra-Industry Trade: Patterns And Determinants In The Italian Case," Quaderni DSEMS 06-2005, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
    8. Duc-Loi Phan & Olivier Gaussens & Claude Clair, 1984. "Le commerce international intra-branche et ses déterminants d'après le schéma de concurrence monopolistique : une vérification empirique," Revue Économique, Programme National Persée, vol. 35(2), pages 347-378.
    9. Horácio Faustino & Nuno Leitão, 2007. "Intra-Industry Trade: A Static and Dynamic Panel Data Analysis," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 13(3), pages 313-333, August.
    10. Hoang, Viet, 2019. "The Dynamics of Agricultural Intra-Industry Trade: A Comprehensive Case Study in Vietnam," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 74-82.
    11. BELLINO, Antonella & CELI, Giuseppe, 2016. "The Migration-Trade Nexus in the Presence of Vertical and Horizontal Product Differentiation," CELPE Discussion Papers 137, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    12. repec:kap:iaecre:v:13:y:2007:i:3:p:313-333 is not listed on IDEAS
    13. Mónica Rivera, 2014. "Trade patterns in the process of European integration: Evidence for the intraindustrial exchanges of a Mediterranean peripheral region," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 227-249, January.
    14. Muhammad Shahbaz & Nuno Carlos Leit o & Muhammad Sabihuddin Butt, 2012. "Pakistan Intra-Industry Trade: A Panel Data Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 2(2), pages 225-232.
    15. Don Clark, 1993. "Recent evidence on determinants of intra-industry trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 129(2), pages 332-344, June.
    16. Lars Nilsson, 1999. "Two-way trade between unequal partners: The EU and the developing countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(1), pages 102-127, March.
    17. Isabel Proença & Horácio Faustino, 2015. "Modelling bilateral intra-industry trade indexes with panel data: a semiparametric approach," Computational Statistics, Springer, vol. 30(3), pages 865-884, September.
    18. Lionel Fontagné & Michaël Freudenberg & Deniz Ünal, 1995. "Régionalisation et échanges de biens intermédiaires," Working Papers 1995-11, CEPII research center.
    19. Don Clark & Denise Stanley, 2003. "Determinants Of Intraindustry Trade Between The United States And Industrial Nations," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 1-17.
    20. Filippo Reganati & Rosanna Pittiglio, 2007. "Two-way international trade and production in Italy: a country/industry specific analysis," STUDI ECONOMICI, FrancoAngeli Editore, vol. 2007(91), pages 75-89.
    21. Das, Gouranga G., 2002. "Cross-Country Analysis of Empirical Evidences of Intra-industry Trade in Manufactures for Dynamic Asian and Other Developing Economies: Implications for Economic Growth and Development," MPRA Paper 37916, University Library of Munich, Germany, revised 2002.
    22. Frahan, Bruno Henry de & Tharakan, Joe, 1998. "Horizontal And Vertical Intra-Industry Trade In The Processed Food Sector," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20903, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Keywords

    Intra-industry trade; Customs Union; Transition economies; Balkan countries; F14; F15;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:iaecre:v:14:y:2008:i:4:p:355-368:10.1007/s11294-008-9164-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.