An Analysis of Bilateral Intra-Industry Trade in the Food Processing Sector

Joseph Hirschberg, Ian M. Sheldon and James R. Dayton

No 233083, Occasional Papers from Regional Research Project NC-194: Organization and Performance of World Food Systems

Abstract: This paper analyzes determinants of intra-industry trade in food processing for a thirty country sample over the period 1964-1985. Previous studies have tested the hypothesis that imperfect competition is a major determinant of intra-industry trade (UT) in the durable goods manufacturing sectors. This study is distinguished. from the earlier studies of ITT by; the examination of the processed food sector (SIC=20), the use of a panel data set for 22 years and 30 countries available at the four digit SIC level, the use of purchasing power parity measures of GDP, and the use of a weighted tobit model with fixed effects to account for the censored cross-section time-series nature of the data. The results indicate that such trade is a positive function of a county's GDP per capita and equality of GDP per capita between countries. In addition, it is also found that a large proportion of this trade is between countries that share common borders and between countries within the European Community.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Pages: 32
Date: 1992-07
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:nc194o:233083

DOI: 10.22004/ag.econ.233083

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