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

Attila Jambor and Nuno Leitão

Post-Communist Economies, 2016, vol. 28, issue 1, 34-48

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.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:taf:pocoec:v:28:y:2016:i:1:p:34-48

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DOI: 10.1080/14631377.2015.1124553

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