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Industry-specific determinants of vertical intra-industry trade: the case of EU new member states’ agri-food sector

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  • Attila Jambor
  • Nuno Carlos Leitão

Abstract

The determinants of intra-industry agri-food trade are analysed to only a limited extent in the literature. This article investigates the industry-specific determinants of vertical intra-industry agri-food trade between new member states of the EU and the other EU countries for the period 1999–2010 by applying a dynamic panel data model. Results suggest that IIT is mainly low vertical in nature, suggesting regional export of low-quality products to EU markets. Results also show that vertical product differentiation and FDI are positively related to VIIT, suggesting that quality growth and investments foster vertical intra-industry trade. As to productivity and factor endowments a negative relationship with VIIT was found, implying the labour abundant and similar nature of NMS agricultural sectors.

Suggested Citation

  • Attila Jambor & Nuno Carlos Leitão, 2016. "Industry-specific determinants of vertical intra-industry trade: the case of EU new member states’ agri-food sector," Post-Communist Economies, Taylor & Francis Journals, vol. 28(1), pages 34-48, January.
    • Handle: RePEc:taf:pocoec:v:28:y:2016:i:1:p:34-48
    DOI: 10.1080/14631377.2015.1124553
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    Cited by:

    1. Vladislav Spitsin & Alexandr Mikhalchuk & Darya Novoseltzeva & Anton Boznyakov & Lubov Spitsina & Irina Antonova, 2016. "Domestic and Foreign Firms in Russian Food Industry for the Period of 2005-2014," International Journal of Economics and Financial Issues, Econjournals, vol. 6(4), pages 1413-1418.
    2. 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.
    3. Karolina Pawlak & Joanna Lukasiewicz, 2022. "Does intra-industry specialisation enhance or limit comparative advantage? Evidence from the world citrus fruit trade," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(9), pages 338-347.
    4. Nuno Carlos Leitão & Daniel Balsalobre Lorente, 2020. "The Linkage between Economic Growth, Renewable Energy, Tourism, CO 2 Emissions, and International Trade: The Evidence for the European Union," Energies, MDPI, vol. 13(18), pages 1-16, September.

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