IDEAS home Printed from https://ideas.repec.org/a/ags/frrfes/277867.html

Intra-industry trade in the wine sector in the enlarged European Union

Author

Listed:
  • Fertő, Imre
  • Podruzsik, Szilárd
  • Balogh, Jeremiás

Abstract

International trade theory suggests that advanced trade integration may lead to a higher level of intra-industry trade. The enlargement of the European Union (EU) during the last decade is a good example to analyse the intra-industry trade in wine products. The aim of the paper is to analyse the pattern and drivers of horizontal intra-industry trade in the wine sector within the EU between 2000 and 2011. We employ an empirical strategy developed by Cieślik (2005) to test Helpman and Krugman (1985) model. We find a growing trend in intra-industry trade with dominance of vertical intra-industry trade. Estimations suggest that Belgium, France, the Netherlands and Germany report the highest level of intra-industry trade within the EU. The level of intra-industry trade is highest among old member states. Empirical evidence indicates that the standard intra-industry theory finds some support in our data when we control for the sum of capital to labour ratios in the estimated equations instead of relative country-size variables. We find that the EU enlargement positively influences total and vertical intra-industry trade while it has negative impacts on horizontal intra-industry trade. Distance has negative effects on all types of intra-industry trade.

Suggested Citation

  • Fertő, Imre & Podruzsik, Szilárd & Balogh, Jeremiás, 2016. "Intra-industry trade in the wine sector in the enlarged European Union," Review of Agricultural, Food and Environmental Studies, Institut National de la Recherche Agronomique (INRA), vol. 97(3).
    • Handle: RePEc:ags:frrfes:277867
    DOI: 10.22004/ag.econ.277867
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/277867/files/Fert%C5%912016_Article_Intra-industryTradeInTheWineSe.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.277867?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
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. is not listed on IDEAS
    2. Imre Fertő & Zoltán Bakucs & Jan Fałkowski, 2021. "Dairy sector trade dynamics: Some insights on the evolution of trade linkages within the EU," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 698-711, September.
    3. Andrey A. Gnidchenko, 2019. "The Conflicting Ways to Dissect Intra-Industry Trade," FIW Working Paper series 193, FIW.
    4. Fertö, I., 2017. "Economic Crisis And the Fragility of World Wine Export," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 9(4).

    More about this item

    Keywords

    ;

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

    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:frrfes:277867. 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.

    We have no bibliographic references for this item. You can help adding them by using 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/inrapfr.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.