IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v10y2003i2p63-68.html
   My bibliography  Save this article

Reconsidering the adjustment costs of the Europe agreements

Author

Listed:
  • Y. Kandogan

Abstract

The paper argues that vertical intra-industry trade (IIT) should be separated from horizontal IIT to have a better judgement about adjustment costs of a trade liberalization, contrary to the assumption in the literature that all IIT changes are costless. A simple method to decompose IIT is presented. Using this method, it is seen that, contrary to expectations, after the Europe Agreements, share of vertical IIT has not increased much between Germany and Central and Eastern European countries. However, when adjustment costs are analysed, it is seen that the resulting labour displacement has been substantial, explaining partly the EU's reluctant approach in these agreements.

Suggested Citation

  • Y. Kandogan, 2003. "Reconsidering the adjustment costs of the Europe agreements," Applied Economics Letters, Taylor & Francis Journals, vol. 10(2), pages 63-68.
    • Handle: RePEc:taf:apeclt:v:10:y:2003:i:2:p:63-68
    DOI: 10.1080/13504850210138478
    as

    Download full text from publisher

    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/13504850210138478&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504850210138478?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. Djankov, Simeon & Hoekman, Bernard, 1996. "Intra-Industry Trade, Foreign Direct Investment and the Reorientation of East European Exports," CEPR Discussion Papers 1377, C.E.P.R. Discussion Papers.
    2. Hoekman, Bernard & Djankov, Simeon, 1996. "Intra-industry trade, foreign direct investment, and the reorientation of Eastern European exports," Policy Research Working Paper Series 1652, The World Bank.
    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. Lorena Skufliæ, 2005. "The integration process as a determinant of intra-industry trade," ERSA conference papers ersa05p715, European Regional Science Association.
    2. Asier Minondo & Gloria Rubert, 2006. "The effect of outsourcing on the demand for skills in the Spanish manufacturing industry," Applied Economics Letters, Taylor & Francis Journals, vol. 13(9), pages 599-604.
    3. Yener Kandogan, 2003. "The Reorientation of Transition Countries??? Exports: Changes in Quantity, Quality and Variety," William Davidson Institute Working Papers Series 2003-631, William Davidson Institute at the University of Michigan.
    4. 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.
    5. Matteo Aepli, 2011. "Intra-industrieller Handel und Wettbewerbsfähigkeit der Schweizer Nahrungsmittelindustrie," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 4(1), pages 245-267.
    6. Fertő, Imre, 2006. "A társulási szerződés alkalmazkodási költségei a magyar élelmiszeriparban [The adjustment cost of the Association Agreement in the Hungarian food industry]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 799-811.
    7. Imre Ferto & Károly Attila Soos, 2008. "Marginal Intra-Industry Trade and Adjustment Costs - A Hungarian-Polish Comparison," CERS-IE WORKING PAPERS 0815, Institute of Economics, Centre for Economic and Regional Studies.
    8. Kandogan, Yener, 2009. "A Gravity Model for Components of Imports," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 5(1-2), pages 1-17, April.
    9. Kandogan, Yener, 2003. "Intra-industry trade of transition countries: trends and determinants," Emerging Markets Review, Elsevier, vol. 4(3), pages 273-286, September.
    10. Veronika CHALA, 2015. "The peculiarities of trade specialization in creative industries in the Central and Eastern European countries," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 6, pages 91-109, June.
    11. Ferto, Imre, 2006. "Reconsidering Adjustment Costs of the Association Agreement. The Case of Hungarian Food Industry," 2006 Annual meeting, July 23-26, Long Beach, CA 21037, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Yener Kandogan, 2003. "Intra-industry Trade of Transition Countries: Trends and Determinants," William Davidson Institute Working Papers Series 2003-566, William Davidson Institute at the University of Michigan.
    13. Imre Ferto, 2009. "Labour Market Adjustment and Intra‐Industry Trade: The Effects of Association on the Hungarian Food Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 668-681, September.
    14. Nasser Al-Mawali, 2005. "Bilateral intra-industry trade flows and intellectual property rights protection: first empirical evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 12(13), pages 823-828.
    15. Yener Kandogan, 2003. "TDoes Product Differentiation Explain The Increase in Exports of Transition Countries?," William Davidson Institute Working Papers Series 2003-599, William Davidson Institute at the University of Michigan.

    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. Stoyan Totev & Grigor Sariiski, 2009. "Delocalisation Process and Changes of Competitive Advantages – A Survey of Enterprises," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 46-57.
    2. Luka, Oksana & Levkovych, Inna, 2004. "Intra-industry trade in agricultural and food products: the case of Ukraine," IAMO Discussion Papers 78, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    3. Iga Magda & David Marsden & Simone Moriconi, 2012. "Collective Agreements, Wages, and Firms' Cohorts: Evidence from Central Europe," ILR Review, Cornell University, ILR School, vol. 65(3), pages 607-629, July.
    4. Gerhard Palme, 1998. "Auswirkungen der EU-Osterweiterung auf die österreichische Sachgüterproduktion. Ostöffnungseffekte beleben österreichische Industrie," WIFO Monatsberichte (monthly reports), WIFO, vol. 71(11), pages 761-769, November.
    5. Michaël Freudenberg & Françoise Lemoine, 1999. "Central and Eastern European Countries in the International Division of Labour in Europe," Working Papers 1999-05, CEPII research center.
    6. repec:cnb:ocpubv:as15 is not listed on IDEAS
    7. Tito Boeri & Joaquim Oliveira Martins, 2002. "Varieties, Jobs and EU Enlargement," Rivista di Politica Economica, SIPI Spa, vol. 92(1), pages 139-178, January-F.
    8. repec:cnb:ocpubv:as08 is not listed on IDEAS
    9. repec:cnb:ocpubv:as13 is not listed on IDEAS
    10. Kaminski, Bartlomiej, 2001. "How accession to the European Union has affected external trade and foreign direct investment in Central European economies," Policy Research Working Paper Series 2578, The World Bank.
    11. Kaminski, Bartlomiej & Ng, Francis, 2001. "Trade and production fragmentation : Central European economies in European Union networks of production and marketing," Policy Research Working Paper Series 2611, The World Bank.
    12. Kandogan, Yener, 2003. "Intra-industry trade of transition countries: trends and determinants," Emerging Markets Review, Elsevier, vol. 4(3), pages 273-286, September.
    13. Yener Kandogan, 2003. "Intra-industry Trade of Transition Countries: Trends and Determinants," William Davidson Institute Working Papers Series 2003-566, William Davidson Institute at the University of Michigan.
    14. Yener Kandogan, 2004. "How Much Restructuring did the Transition Countries Experience? Evidence from Quality of their Exports," William Davidson Institute Working Papers Series 2004-637, William Davidson Institute at the University of Michigan.
    15. Tito Boeri & Joaquim Oliveira-Martins, 2002. "Transition, variété des produits et intégration économique," Economie & Prévision, La Documentation Française, vol. 0(1), pages 55-69.
    16. Gabrisch, Hubert, 2009. "Vertical Intra-Industry Trade, Technology and Income Distribution: A Panel Data Analysis of EU Trade with Central-East European Countries," MPRA Paper 64181, University Library of Munich, Germany.
    17. A. Tedeyeva V. & А. Тедеева В., 2018. "Влияние ПИИ на формирование и реализацию стратегических региональных приоритетов развития // The impact of FDI on setting and implementation of strategic priorities for regional development," Экономика. Налоги. Право // Economics, taxes & law, ФГОБУ "Финансовый университет при Правительстве Российской Федерации" // Financial University under The Government of Russian Federation, vol. 11(4), pages 152-160.
    18. Elżbieta Kawecka-Wyrzykowska, 2009. "Evolving pattern of intra-industry trade specialization of the new Member States (NMS) of the EU: the case of automotive industry," European Economy - Economic Papers 2008 - 2015 364, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    19. Yener Kandogan, 2003. "TDoes Product Differentiation Explain The Increase in Exports of Transition Countries?," William Davidson Institute Working Papers Series 2003-599, William Davidson Institute at the University of Michigan.
    20. J. Caetano & A. Galego & E. Vaz & C. Vieira & I. Vieira, 2002. "The Eastward Enlargement of the Eurozone: Trade and FDI," Eastward Enlargement of the Euro-zone Working Papers wp07, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Aug 2002.
    21. repec:cnb:ocpubv:as16 is not listed on IDEAS
    22. Lorena Skufliæ, 2005. "The integration process as a determinant of intra-industry trade," ERSA conference papers ersa05p715, European Regional Science Association.
    23. Eichengreen, Barry & Kohl, Richard, 1998. "The External Sector, the State and Development in Eastern Europe," CEPR Discussion Papers 1904, C.E.P.R. Discussion Papers.
    24. Yener Kandogan, 2003. "The Reorientation of Transition Countries??? Exports: Changes in Quantity, Quality and Variety," William Davidson Institute Working Papers Series 2003-631, William Davidson Institute at the University of Michigan.

    More about this item

    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:taf:apeclt:v:10:y:2003:i:2:p:63-68. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    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.