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Intra-industry Trade in the European Dairy Industry

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  • Pieri, Renato
  • Rama, Daniele
  • Venturini, Luciano

Abstract

This paper examines bilateral intra-industry trade (IIT) in the EU dairy products industry during 1988-92, in order to assess whether both country-specific and industry-specific factors determine this component of trade flows. It is shown that IIT in dairy products between pairs of countries is negatively related to the variables indicating inequality between the two countries. Two-way flows are thus more significant, the more similar the countries are. The coefficients for the variables describing industry structure suggest that the presence of large firms with an absolute cost advantage over smaller firms stimulates IIT-enhancing non-price competition. Concentration in the retail sector was found to have a negative effect on II, which conflicts with our original hypothesis. Copyright 1997 by Oxford University Press.

Suggested Citation

  • Pieri, Renato & Rama, Daniele & Venturini, Luciano, 1997. "Intra-industry Trade in the European Dairy Industry," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 24(3-4), pages 411-425.
    • Handle: RePEc:oup:erevae:v:24:y:1997:i:3-4:p:411-25
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    Cited by:

    1. Imre Fertő & Szilárd Podruzsik & Jeremiás Balogh, 2016. "Intra-industry trade in the wine sector in the enlarged European Union," Review of Agricultural, Food and Environmental Studies, Springer, vol. 97(3), pages 159-172, November.
    2. Saeed Rasekhi & Shideh Sadat Shojaee, 2012. "Determinant factors of vertical intra industry trade in agricultural sector: A study of Iran and her main trading partners," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(4), pages 180-190.
    3. Elsner, Karin & Hartmann, Monika, 1998. "Convergence of food consumption patterns between Eastern and Western Europe," IAMO Discussion Papers 13, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    4. Elsner, Karin & Hartmann, Monika, 1998. "Convergence Of Food Consumption Patterns Between Eastern And Western Europe," IAMO Discussion Papers 14875, Institute of Agricultural Development in Transition Economies (IAMO).

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