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Intra-Industry Trade in Agri-Food Products between Hungary and EU

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Author Info
Imre Ferto () (Institute of Economics of Hungarian Academy of Sciences)
Lionel J. Hubbard () (Department of Agricultural Economics and Food Marketing, University of Newcastle upon Tyne, UK)

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Abstract

We present an analysis of the intra-industry nature of agri-food trade between Hungary and the European Union, following the Association Agreement signed in 1991. A slight growth in intra-industry trade (IIT) is indicated by the Grubel-Lloyd index. However, it is not uniform by product group or EU member state or over time, reflecting different patterns of bilateral integration and an economic restructuring process that is far from complete. Marginal IIT appears to be low, but assumes greater significance when the index is broadened to include vertical as well as horizontal IIT. Accordingly, the structure of the change in agri-food trade between Hungary and the EU during the period is shown to be predominantly either intra– industry of a vertical nature or inter-industry. Both are believed to incur adjustment costs that are higher than with horizontal IIT, but the dominance of vertical IIT suggests that the agri-food industries of Hungary and the EU may be developing in a complementary manner, involving somewhat lower adjustment costs than may have been feared.

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Publisher Info
Paper provided by Institute of Economics, Hungarian Academy of Sciences in its series IEHAS Discussion Papers with number 0106.

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Length: 22 pages
Date of creation: Aug 2001
Date of revision:
Handle: RePEc:has:discpr:0106

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  1. 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, vol. 135(1), pages 62-81, March. [Downloadable!] (restricted)
  2. Abdul Azhar & Robert Elliott & Chris Milner, 1998. "Static and dynamic measurement of intra-industry trade and adjustment: A geometric reappraisal," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 134(3), pages 404-422, September. [Downloadable!] (restricted)
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  3. 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, vol. 130(2), pages 418-427, June. [Downloadable!] (restricted)
  4. Lars Nilsson, 1997. "The measurement of intra-industry trade between unequal partners," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(3), pages 554-565, September. [Downloadable!] (restricted)
  5. Jayant Menon & Peter Dixon, 1997. "Intra-industry versus inter-industry trade: Relevance for adjustment costs," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(1), pages 164-169, March. [Downloadable!] (restricted)
  6. Clive Hamilton & Paul Kniest, 1991. "Trade liberalisation, structural adjustment and intra-industry trade: A note," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(2), pages 356-367, June. [Downloadable!] (restricted)
  7. Brulhart, Marius, 2000. "Dynamics of Intraindustry Trade and Labor-Market Adjustment," Review of International Economics, Blackwell Publishing, vol. 8(3), pages 420-35, August. [Downloadable!] (restricted)
  8. Hirschberg, Joseph G & Sheldon, Ian M & Dayton, James R, 1994. "An Analysis of Bilateral Intra-industry Trade in the Food Processing Sector," Applied Economics, Taylor and Francis Journals, vol. 26(2), pages 159-67, February.
  9. Jarko Fidrmuc & Daniela Grozea-Helmenstein & Andreas Wörgötter, 1999. "East-west intra-industry trade dynamics," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(2), pages 332-346, June. [Downloadable!] (restricted)
  10. Joaquín Oliveras & Inés Terra, 1997. "Marginal intra-industry trade index: The period and aggregation choice," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(1), pages 170-178, March. [Downloadable!] (restricted)
  11. Lovely, Mary E & Nelson, Douglas R, 2000. "Marginal Intraindustry Trade and Labor Adjustment," Review of International Economics, Blackwell Publishing, vol. 8(3), pages 436-47, August. [Downloadable!] (restricted)
  12. Rodney Thom & Moore McDowell, 1999. "Measuring marginal intra-industry trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(1), pages 48-61, March. [Downloadable!] (restricted)
  13. Qasmi, Bashir A. & Fausti, Scott W., 1999. "Nafta Intra Industry Trade In Agricultural Food Products," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35689, Western Agricultural Economics Association. [Downloadable!]
  14. Jarko Fidrmuc, 2000. "Restructuring European union trade with central and eastern European countries," Atlantic Economic Journal, International Atlantic Economic Society, vol. 28(1), pages 83-92, March. [Downloadable!] (restricted)
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