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Intra-Industry Trade and Specialisation in Processed Agricultural Products: The Case of the US and EC

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  • McCorriston, Steve
  • Sheldon, Ian M.

Abstract

The literature on intra-industry trade emphasises imperfect competition as a determinant of such trade, and most of the empirical work has focussed on manufactured goods. However, given the growth in trade in processed agricultural products, particularly between developed countries, and given the structure of the food processing industries, then trade in processed products may also be intra-industry in nature. This paper, therefore, examines trade in high-value products for the US and EC using measures of intra-industry trade and specialisation. The results show intra-industry specialisation to be generally more important for the EC than the US.

Suggested Citation

  • McCorriston, Steve & Sheldon, Ian M., 1990. "Intra-Industry Trade and Specialisation in Processed Agricultural Products: The Case of the US and EC," Occasional Papers 232835, Regional Research Project NC-194: Organization and Performance of World Food Systems.
    • Handle: RePEc:ags:nc194o:232835
    DOI: 10.22004/ag.econ.232835
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    References listed on IDEAS

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    1. Brander, James & Krugman, Paul, 1983. "A 'reciprocal dumping' model of international trade," Journal of International Economics, Elsevier, vol. 15(3-4), pages 313-321, November.
    2. Charles Handy & James M. MacDonald, 1989. "Multinational Structures and Strategies of U.S. Food Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(5), pages 1246-1254.
    3. George Norman & John Dunning, 1984. "Intra-industry foreign direct investment: Its rationale and trade effects," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 120(3), pages 522-540, September.
    4. Sheldon, Ian, 1989. "Intra-Industry Trade and Specialisation in Processed Agricultural Products: Theory and Issues," Occasional Papers 232829, Regional Research Project NC-194: Organization and Performance of World Food Systems.
    5. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    6. Dennis R. Henderson, 1989. "Transnational Structuring in Food Processing and Marketing: Introduction," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(5), pages 1244-1245.
    7. Brander, James A., 1981. "Intra-industry trade in identical commodities," Journal of International Economics, Elsevier, vol. 11(1), pages 1-14, February.
    8. Balassa, Bela & Bauwens, Luc, 1987. "Intra-industry Specialisation in a Multi-country and Multi-industry Framework," Economic Journal, Royal Economic Society, vol. 97(388), pages 923-939, December.
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    Cited by:

    1. Bruno Henry de Frahan & Patricia Libert, 1996. "Le commerce intra-banche dans l'industrie agro-alimentaire européenne. Une nouvelle forme de globalisation," Économie rurale, Programme National Persée, vol. 234(1), pages 78-88.

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    Keywords

    Agricultural and Food Policy;

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