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In Search for the Determinants of Intra-Industry Trade within an Enlarged Europe

José Caetano () and Aurora Galego

South-Eastern Europe Journal of Economics, 2007, vol. 5, issue 2, 163-183

Abstract: In this paper we characterise the dynamics of trade among Central and Eastern European Countries (CEEC) and the EU using several methodologies that evaluate the type of trade and price-quality ranges. The analysis shows a significant decline in inter-industrial trade and an increasing specialisation in vertical intra-industry trade (IIT). Moreover, we found substantial differences in the unit values of exported and imported goods, which suggest that the increasing weight of IIT in the EU-CEEC trade did not result from a convergence on the factorial contents of the traded goods. Using a panel data approach we also identify the determinants of both vertical and horizontal IIT. The results suggest that there are some differences in the determinants of these types of trade, although both seem to have a statistically significant relationship with a country's size and foreign direct investment.

Keywords: Commercial Banks; Cooperative Banks; Performance; Ranking (search for similar items in EconPapers)
JEL-codes: F14 F15 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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