IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa05p715.html
   My bibliography  Save this paper

The integration process as a determinant of intra-industry trade

Author

Listed:
  • Lorena Skufliæ

Abstract

Trade structure is usually defined as inter or intra-industrial type. The pattern of production and trade that emerges after opening the economies of transition is partly driven by relative factor prices and endowment and partly by economies of scale and scope, but much depends on historical experiences. The first determinancy will lead to the increasing inter-industry trade, so the country which has labour force exports labour-intensive products and imports capital-intensive products because capital is its rare factor. The more dissimilar are countries endowment, the greater the volume of inter-trade will be. This concept of trade is based on Heckser-Ohlin theorem. The second factor will generate intra-industry trade, the exchange of similar manufactured goods, with companies specialized in different varities of similar goods. Economic theory predicts that the volume of intra-industry trade depends of two groups of determinants; first group is related to country and second to the industry. Determinants relate to the country are: level of the economic development, size of the market, distance between countries, trade orientation, economic integration and trade barriers. In this paper will be analyze some of before mentioned determinants. During research, it will be used the Grubel-Lloyd index to calculate the intensity of intra- industry trade at the 4-digit SITC levels to determine the relative importance of IIT as opposed to inter-industry trade in the trade exchange between Croatia and EU and Slovenia and EU. IIT would be estimated for whole trade and across industries on the case of Croatia and Slovenia. A time series approach would be used to estimate any trend in the ratio of intra industry trade to total trade in relation to the EU. These analyze has aim to consider how trade has changed in the period of trade liberalization and including in integration process. On the basis of collected statistical data,it will be calculate the intra-industry trade index, and inter-industry index and also analyze if there is vertical or horizontal intra-industry trade. According to the economic theory removal of trade barriers through bilateral and multilateral negotiations has positive impacts on IIT but the results do not proof hypo these especially in the case of Croatia, very IIT decreases as integration process goes on.

Suggested Citation

  • Lorena Skufliæ, 2005. "The integration process as a determinant of intra-industry trade," ERSA conference papers ersa05p715, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa05p715
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa05/papers/715.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    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.
    3. Y. Kandogan, 2003. "Reconsidering the adjustment costs of the Europe agreements," Applied Economics Letters, Taylor & Francis Journals, vol. 10(2), pages 63-68.
    4. 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.
    Full references (including those not matched with items 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. 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.
    2. Kandogan, Yener, 2003. "Intra-industry trade of transition countries: trends and determinants," Emerging Markets Review, Elsevier, vol. 4(3), pages 273-286, September.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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).
    8. repec:cnb:ocpubv:as16 is not listed on IDEAS
    9. Tito Boeri & Joaquim Oliveira-Martins, 2002. "Transition, variété des produits et intégration économique," Économie et Prévision, Programme National Persée, vol. 152(1), pages 55-69.
    10. 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.
    11. 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.
    12. 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.
    13. Y. Kandogan, 2003. "Reconsidering the adjustment costs of the Europe agreements," Applied Economics Letters, Taylor & Francis Journals, vol. 10(2), pages 63-68.
    14. 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.
    15. 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.
    16. repec:cnb:ocpubv:as15 is not listed on IDEAS
    17. repec:cnb:ocpubv:as12 is not listed on IDEAS
    18. Kaitila, Ville & WidgrÉn, Mika, 1999. "Revealed Comparative Advantage in Trade between the European Union and the Baltic States," Discussion Papers 697, The Research Institute of the Finnish Economy.
    19. repec:cnb:ocpubv:as08 is not listed on IDEAS
    20. repec:lic:licosd:33413 is not listed on IDEAS
    21. repec:cnb:ocpubv:as13 is not listed on IDEAS
    22. repec:cnb:ocpubv:as14 is not listed on IDEAS
    23. Gabrisch, Hubert, 2006. "Vertical Intra-industry Trade between EU and Accession Countries," IWH Discussion Papers 12/2006, Halle Institute for Economic Research (IWH).
    24. Yener Kandogan, 1999. "Lingering effects of central planning on trade? Evidence from current CIS trade patterns," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(3), pages 501-521, September.
    25. Klodt, Henning & Maurer, Rainer, 1996. "Internationale Direktinvestitionen: Determinanten und Konsequenzen für den Standort Deutschland," Kiel Discussion Papers 284, Kiel Institute for the World Economy (IfW Kiel).
    26. Miklos Szanyi, 2002. "Spillover effects and business linkages of foreign-owned firms in Hungary," IWE Working Papers 126, Institute for World Economics - Centre for Economic and Regional Studies.
    27. 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.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:wiw:wiwrsa:ersa05p715. 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: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    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.