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

Jambor, A., N.C. Leitão (2016), "Industry-specific determinants of vertical intra-industry trade: the case of EU new member states’ agri-food sector", Post-Communist Economies, 28(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.