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Intra-Industry Trade in Agricultural and Food Products: The Case of Ukraine

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Author Info
Levkovych, Inna
Luka, Oksana
Abstract

We present an analysis of agricultural and food trade in Ukraine over the period 1996-2002 focusing on different aspects of intra-industry trade. We estimated Grubel-Lloyd and marginal IIT indexes to examine the relevance of intra-industry trade between Ukraine and its trading partners and the changes in nature of trade flows over time. The results indicate that the major part of agro-food trade is of the inter-industry type, and thus a product of underlying comparative advantages. The low level of index seems to be typical for primary sectors in comparison to industries with higher product differentiation. Also marginal IIT appears to be low, the structure of the changes in agro-food trade flows between Ukraine and its trading partners during the analyzed period is shown to be predominantly intra–industry. These results imply that the restructuring process, associated with trade liberalization of Ukraine on bilateral and multilateral level, will induce higher adjustment costs than in an intra-industry trade environment.

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Paper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24632.

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Date of creation: 2005
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Handle: RePEc:ags:eaae05:24632

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Keywords: intra-industry trade; marginal intra-industry trade; agro-food products; Ukraine; International Relations/Trade; F14; Q17;

References listed on IDEAS
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  1. Antonio Aquino, 1978. "Intra-industry trade and inter-industry specialization as concurrent sources of International Trade in manufactures," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 114(2), pages 275-296, June. [Downloadable!] (restricted)
  2. Aturupane, Chonira & Djankov, Simeon & Hoekman, Bernard, 1997. "Determinants of Intra-Industry Trade between East and West Europe," CEPR Discussion Papers 1721, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Štefan Bojnec, 2001. "Patterns of Intra-Industry Trade in Agricultural and Food Products During Transition," Eastern European Economics, M.E. Sharpe, Inc., vol. 39(1), pages 61-89, January. [Downloadable!] (restricted)
  4. Joakim Gullstrand, 2002. "Does the measurement of intra-industry trade matter?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(2), pages 317-339, June. [Downloadable!] (restricted)
  5. José Blanes & Carmela Martín, 2000. "The nature and causes of intra-industry trade: Back to the comparative advantage explanation? The case of Spain," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(3), pages 423-441, 09. [Downloadable!] (restricted)
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  6. 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. [Downloadable!] (restricted)
  7. 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. [Downloadable!]
  8. Lionel Fontagne & Michael Freudenberg, 1997. "Intra-Industry Trade : Methodological Issues Reconsidered," Working Papers 1997-01, CEPII research center. [Downloadable!]
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