IDEAS home Printed from https://ideas.repec.org/p/ags/iamodp/14923.html
   My bibliography  Save this paper

Intra-Industry Trade In Agricultural And Food Products: The Case Of Ukraine

Author

Listed:
  • Luka, Oksana
  • Levkovych, Inna

Abstract

The process of economic transformation in Ukraine is characterized by, among other things, a change in agricultural and food product trading patterns. Ukraine has remained a net exporter of agro-food products, but the total volume and worth, as well as the geographical structure of trade flows, has altered significantly, and further adjustments can be expected to take place in upcoming years. This paper examines Ukrainian agro-food trade, particularly focusing on different aspects of intra-industry trade (IIT), which is usually associated with low adjustment costs. To examine the development of IIT in agro-food products between Ukraine and its trading partners, two approaches are adopted. The Grubel-Lloyd Index is used to calculate the intensity of IIT and thus to determine its relative importance compared to inter-industry trade. IIT values estimated across separate product groups and for selected trading partners differ significantly and exhibit high variability over time, but generally the level of IIT is very low. The results show that the major part of agro-food trade is of the inter-industry type, and thus a product of underlying comparative advantages. Secondly, the paper examines changes in trade flows over time. For this purpose, different measures of marginal intra-industry trade are applied. Marginal IIT appears to be low, therefore, the structure of the change in agro-food trade flows between Ukraine and its trading partners during the analyzed period (1996-2002) is shown to be predominantly inter-industry, which implies potentially high adjustment costs. ZUSAMMENFASSUNG INTRASEKTORALER HANDEL IM LANDWIRTSCHAFTLICHEN UND NAHRUNGSMITTELSEKTOR: DAS BEISPIEL DER UKRAINE Der Transformationsprozess in der Ukraine ist unter anderem durch Änderungen der Handelsstruktur von landwirtschaftlichen und Nahrungsmittelprodukten charakterisiert. So haben sich das Gesamthandelsvolumen, die Warenstruktur sowie die geografische Struktur der Handelsströme bedeutsam geändert. Weitere Änderungen sind demnächst zu erwarten. Dennoch bleibt die Ukraine Netto-Exporteur von landwirtschaftlichen und Nahrungsmittelprodukten. Das Ziel von diesem Papier ist, die Landwirtschaft und den Nahrungsmittelhandel der Ukraine detailliert zu untersuchen. Hauptaugenmerk liegt dabei auf verschiedenen Aspekten des intrasektoralen Handels, welcher gewöhnlich mit niedrigen Anpassungskosten verbunden ist. Um dessen Entwicklung zu untersuchen, wurden zwei Ansätze verwendet. Zunächst nutzen wir den Grubel-Lloyd Index für die Bewertung der Intensität des intrasektoralen Handels. Herausgestellt werden soll die Bedeutung des intrasektoralen im Vergleich zu zwischensektoralem Handel. Das Niveau des intrasektoralen Handels, welches für Produktgruppen sowie für ausgewählte Handelspartner berechnet wurde, unterscheidet sich wesentlich und weist große Schwankungen im Zeitablauf auf. Insgesamt ist das Niveau aber sehr gering. Die Ergebnisse zeigen, dass der intersektorale Handel überwiegt. Dies wird durch komparative Vorteile verursacht. Danach untersucht die Arbeit außerdem die Änderungen der Handelsströme im Zeitablauf. Dafür wurden verschiedene Maße des marginalen intrasektoralen Handels angewendet. Die marginalen Indizes sind niedrig, was bedeutet, dass die Änderungen in den Handelsströmen zwischen Ukraine und ihren Handelspartnern während der untersuchten Periode (1996-2002) intersektoralen Charakter haben, und somit potenzielle höhere Anpassungskosten mit einschließt. РЕЗЮМЕ ВНУТРИОТРАСЛЕВАЯ ТОРГОВЛЯ СЕЛЬСКОХОЗЯЙСВЕННОЙ ПРОДУКЦИЕЙ И ПРОДОВОЛЬСТВИЕМ: НА ПРИМЕРЕ УКРАИНЫ Изменение структруры внешней торговли сельскохозяйственной продукцией и продовольствием, среди прочего, является одной из важных характеристик процесса трансформации экономики Украины. Украина остается нетто-экпортером агропродовольственной продукции, однако общий объем торговли, а также ее товарная и географическая структура существенно изменились, и ожидается, что в ближайшем будущем будут происходить дальнейшие ее изменения. Целью данной работы является детальное изучение украинской агропродовольственной торговли с акцентом на исследовании различных аспектов внутриотраслевой торговли, наличие которой обычно подразумевает меньшие затраты, связанные с трансформацией внешней торговли в процессе ее либерализации. Для анализа развития внутриотраслевой торговли между Украиной и ее торговыми партнерами использованы два подхода. Индекс Грубеля-Ллойда определяет интенсивность внутриотраслевой торговли и ее весомость по сравнению с межотраслевой. Значения индекса существенно варьируют по товарным группам, торговым партнерам и годам, однако его уровень в целом очень низкий. Полученные результаты свидетельствуют, что торговля агропродовольственной продукцией в основном является межотраслевой, что обусловлено сравнительными преимуществами страны. Кроме того, в работе анализируются изменения торговых потоков на протяжении 1996-2002 гг. с использованием различных показателей маржинальной внутриотраслевой торговли. Поскольку уровень маржинальной внутриотраслевой торговли достаточно низкий, изменения потоков агропродовольственной продукции между Украиной и ее торговыми партнерами на протяжении анализируемого периода являются межотраслевыми, что подразумевает потенциально высокие затраты в связи структурными изменениями в отрасли.

Suggested Citation

  • Luka, Oksana & Levkovych, Inna, 2004. "Intra-Industry Trade In Agricultural And Food Products: The Case Of Ukraine," IAMO Discussion Papers 14923, Institute of Agricultural Development in Transition Economies (IAMO).
    • Handle: RePEc:ags:iamodp:14923
    DOI: 10.22004/ag.econ.14923
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/14923/files/dp040078.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.14923?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:zbw:iamodp:92027 is not listed on IDEAS
    2. Finger, J M, 1975. "Trade Overlap and Intra-Industry Trade," Economic Inquiry, Western Economic Association International, vol. 13(4), pages 581-589, December.
    3. Bojnec, Štefan & Hartmann, Monika, 2004. "Agricultural and food trade in Central and Eastern Europe: the case of Slovenian intra-industry trade," IAMO Discussion Papers 65, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    4. 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;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 136(3), pages 423-441, September.
    5. 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.
    6. Ferto, Imre & Hubbard, Lionel J., 2001. "Intra-Industry Trade In Agri-Food Products Between Hungary And The Eu," 2001 Annual meeting, August 5-8, Chicago, IL 20450, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. 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;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 114(2), pages 275-296, June.
    8. Abdul Azhar & Robert Elliott, 2003. "On the measurement of trade-induced adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 139(3), pages 419-439, September.
    9. Stefano Chiarlone, 2001. "Evidence of Product Differentiation and Relative Quality in Italian Trade," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 147-168.
    10. Lionel Fontagné & Michaël Freudenberg & Nicolas Peridy, 1997. "Trade Patterns Inside the Single Market," Working Papers 1997-07, CEPII research center.
    11. Corden, W. Max., 1997. "Trade Policy and Economic Welfare," OUP Catalogue, Oxford University Press, edition 2, number 9780198775348.
    12. Joaquín Oliveras & Inés Terra, 1997. "Marginal intra-industry trade index: The period and aggregation choice," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 133(1), pages 170-178, March.
    13. Marius Brülhart & Robert C. Hine (ed.), 1999. "Intra-Industry Trade and Adjustment," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-27173-3.
    14. Greenaway, David & Hine, Robert C & Milner, Chris, 1995. "Vertical and Horizontal Intra-industry Trade: A Cross Industry Analysis for the United Kingdom," Economic Journal, Royal Economic Society, vol. 105(433), pages 1505-1518, November.
    15. Gabrisch, Hubert & Segnana, Maria Luigia, 2002. "Intra-industry trade between European Union and Transition Economies. Does income distribution matter?," IWH Discussion Papers 155/2002, Halle Institute for Economic Research (IWH).
    16. Rodney Thom & Moore McDowell, 1999. "Measuring marginal intra-industry trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(1), pages 48-61, March.
    17. Ferto, Imre & Hubbard, Lionel J., 2002. "Intra-Industry Trade in Horizontally and Vertically Differentiated Agri-Food Products between Hungary and the EU," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24884, European Association of Agricultural Economists.
    18. Greenaway, David & Milner, Chris R, 1983. "On the Measurement of Intra-Industry Trade," Economic Journal, Royal Economic Society, vol. 93(372), pages 900-908, December.
    19. Chonira Aturupane & Simeon Djankov & Bernard Hoekman, 1999. "Horizontal and vertical intra-industry trade between Eastern Europe and the European union," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(1), pages 62-81, March.
    20. David Greenaway & Robert Hine & Chris Milner & Robert Elliott, 1994. "Adjustment and the measurement of marginal intra-industry trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(2), pages 418-427, June.
    21. Brenton, Paul & Gros, Daniel, 1997. "Trade Reorientation and Recovery in Transition Economies," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 13(2), pages 65-76, Summer.
    22. Joakim Gullstrand, 2002. "Does the measurement of intra-industry trade matter?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(2), pages 317-339, June.
    23. Greenaway, David & Milner, Chris & Elliott, Robert J R, 1999. "UK Intra-industry Trade with the EU North and South," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(3), pages 365-384, August.
    24. 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.
    25. Lionel Fontagné & Michaël Freudenberg, 1997. "Intra-Industry Trade: Methodological Issues Reconsidered," Working Papers 1997-01, CEPII research center.
    26. David Greenaway & Chris Milner & Robert J. R. Elliott, 1999. "UK Intra‐industry Trade with the EU North and South," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(3), pages 365-384, August.
    27. Marius Brülhart, 1994. "Marginal Intra-Industry Trade: Measurement and Relevance," Economics Technical Papers 942, Trinity College Dublin, Department of Economics.
    28. Giancarlo Gandolfo, 2014. "International Trade Theory and Policy," Springer Texts in Business and Economics, Springer, edition 2, number 978-3-642-37314-5, August.
    29. Carmen Mora, 2002. "The role of comparative advantage in trade within industries: A panel data approach for the European Union," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(2), pages 291-316, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luka, Oksana & Levkovych, Inna, 2004. "Intra-industry trade in agricultural and food products: the case of Ukraine," IAMO Discussion Papers 78, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    2. Levkovych, Inna, 2011. "Der ukrainische Außenhandel mit Produkten der Agrar- und Ernährungswirtschaft: Eine quantitative Analyse aus Sicht traditioneller und neuer Außenhandelstheorien," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 59, number 109520.
    3. Abdul K. M. Azhar & Robert J. R. Elliott, 2008. "On the Measurement of Changes in Product Quality in Marginal Intra-Industry Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(2), pages 225-247, July.
    4. AZHAR, Abdul K.M. & Elliott, Robert J.R. & Liu, Junting, 2008. "On the measurement of product quality in intra-industry trade: An empirical test for China," China Economic Review, Elsevier, vol. 19(2), pages 336-344, June.
    5. Pittiglio, Rosanna, 2009. "The Intra-industry Trade for a Highincome Country: New Empirical Evidence for Italy," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 62(2), pages 233-254.
    6. Abdul Azhar & Robert Elliott, 2011. "A Measure of Trade Induced Adjustment in Volume and Quality Space," Open Economies Review, Springer, vol. 22(5), pages 955-968, November.
    7. Fertő, Imre, 2006. "Vertikálisan és horizontálisan differenciált, ágazaton belüli kereskedelem az Európai Unió tejpiacán [Trade within vertically and horizontally differentiated industries on the milk market of the Eu," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 526-539.
    8. Patryk Emanuel TOPOROWSKI, 2017. "Did the economic crisis change V4 trade patterns? The case of intra-industry trade," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 8, pages 71-93, December.
    9. Juliette Milgram‐Baleix & Ana I. Moro‐Egido, 2010. "The Asymmetric Effect of Endowments on Vertical Intra‐industrial Trade," The World Economy, Wiley Blackwell, vol. 33(5), pages 746-777, May.
    10. Robert Elliott & David Greenaway & Robert Hine, 2000. "Tests for factor homogeneity and industry classification," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 136(2), pages 355-371, June.
    11. Hoang, Viet, 2019. "The Dynamics of Agricultural Intra-Industry Trade: A Comprehensive Case Study in Vietnam," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 74-82.
    12. Fertő, Imre & Hubbard, Lionel J., 2003. "A vertikálisan és horizontálisan differenciált mezőgazdasági termékek ágazaton belüli kereskedelme Magyarország és az Európai Unió Között [Intra-industry trade in vertically and horizontally differ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 152-163.
    13. Rosanna Pittiglio & Filippo Reganati, 2012. "Vertical intra-industry trade in higher and lower quality: a new approach of measuring country-specific determinants," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 44-62.
    14. Bernardina Algieri, 2007. "Trade Specialisation Dynamics in Russia," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 49(2), pages 232-258, June.
    15. Sakshi Aggarwal & Debashis Chakraborty, 2020. "Labour Market Adjustment and Intra-Industry Trade: Empirical Results from Indian Manufacturing Sectors," Journal of South Asian Development, , vol. 15(2), pages 238-269, August.
    16. Valerija Botrić, 2013. "Determinants of Intra-industry Trade between Western Balkans and EU-15: Evidence from Bilateral Data," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 6(2), pages 7-23, September.
    17. Juliette Milgram Baleix & Ana I. Moro Egido, 2006. "Do Endowments Matter for Vertical Intra-Industry Trade with Emergent Countries? Empirical Evidence for Spain," ThE Papers 06/10, Department of Economic Theory and Economic History of the University of Granada..
    18. Martin Andresen, 2010. "A cross-industry analysis of intra-industry trade measurement thresholds: Canada and the United States, 1988–1999," Empirical Economics, Springer, vol. 38(3), pages 793-808, June.
    19. Bojnec, Štefan & Hartmann, Monika, 2004. "Agricultural and food trade in Central and Eastern Europe: the case of Slovenian intra-industry trade," IAMO Discussion Papers 65, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    20. Juliette Milgram Baleix & Ana I Moro-Egido, "undated". "Trade types with developed and developing countries. What can we learn from Spanish data?," Working Papers on International Economics and Finance 05-06, FEDEA.

    More about this item

    Keywords

    Industrial Organization;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iamodp:14923. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iamoode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.