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Determinant Factors Of Intra-Industry Trade: The Case Of Poland And Its European Union Trading Partners

Author

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  • Justyna Lapinska

    (Nicolaus Copernicus University)

Abstract

This study has investigated the country-specific determinants of intra-industry exchange between Poland and its European Union trading partners during the time period 2002–2011. The analysis of the factors determining the Polish bilateral intra-industry trade with European Union countries applied an econometric model for panel data. As follows from the research, the intensity of intra-industry trade is dependent on numerous factors. The factors that exert a positive impact on the development of intra-trade exchange include the participation of processed products in bilateral trade between Poland and UE states, the intensity of trade with specific countries as well as the size of a partner country measured by its GDP per capita. Increases in the intra-trade turnover are also facilitated by EU membership and by the fact that Poland’s trade partners use a similar language, belonging to the group of the Slavic languages. The intensity of intra-trade exchange is weakened by the degree of the imbalance of trade turnover between trading partners, geographical distance that separates trading partners and significant differences in the size of trading partners’ GDPs.

Suggested Citation

  • Justyna Lapinska, 2016. "Determinant Factors Of Intra-Industry Trade: The Case Of Poland And Its European Union Trading Partners," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(2), pages 251-264, June.
    • Handle: RePEc:pes:ierequ:v:11:y:2016:i:2:p:251-264
    DOI: 10.12775/EQUIL.2016.011
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    References listed on IDEAS

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    Cited by:

    1. Aggarwal, Sakshi & Chakraborty, Debashis, 2017. "Determinants of India’s Bilateral Intra-Industry Trade over 2001-15: Empirical Results," MPRA Paper 78020, University Library of Munich, Germany.
    2. Sakshi Aggarwal & Debashis Chakraborty, 2022. "Which Factors Influence India’s Bilateral Intra-Industry Trade? Cross-Country Empirical Estimates," Working Papers 2260, Indian Institute of Foreign Trade.
    3. Aggarwal, Sakshi, 2023. "Intra-industry trade: Revisiting theory and Literature Survey," MPRA Paper 117182, University Library of Munich, Germany.
    4. Sakshi Aggarwal & Debashis Chakraborty, 2017. "Determinants of India’s Bilateral Intra-industry Trade over 2001–2015," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 18(2), pages 296-313, September.
    5. Aggarwal, Sakshi, 2023. "The empirical measurement and determinants of intra-industry trade for a developing country," MPRA Paper 117112, University Library of Munich, Germany.
    6. Sakshi Aggarwal & Debashis Chakraborty, 2022. "Which Factors Influence India’s Intra-Industry Trade? Empirical Findings for Select Sectors," Global Business Review, International Management Institute, vol. 23(3), pages 729-755, June.

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    More about this item

    Keywords

    intra-industry trade; country-specific determinants; Poland; European Union;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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