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Intra-Industry Trade in Agricultural and Food Products: The Case of Ukraine

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  • Levkovych, Inna
  • Luka, Oksana

Abstract

We present an analysis of agricultural and food trade in Ukraine over the period 1996-2002 focusing on different aspects of intra-industry trade. We estimated Grubel-Lloyd and marginal IIT indexes to examine the relevance of intra-industry trade between Ukraine and its trading partners and the changes in nature of trade flows over time. The results indicate that the major part of agro-food trade is of the inter-industry type, and thus a product of underlying comparative advantages. The low level of index seems to be typical for primary sectors in comparison to industries with higher product differentiation. Also marginal IIT appears to be low, the structure of the changes in agro-food trade flows between Ukraine and its trading partners during the analyzed period is shown to be predominantly intra-industry. These results imply that the restructuring process, associated with trade liberalization of Ukraine on bilateral and multilateral level, will induce higher adjustment costs than in an intra-industry trade environment.

Suggested Citation

  • Levkovych, Inna & Luka, Oksana, 2005. "Intra-Industry Trade in Agricultural and Food Products: The Case of Ukraine," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24632, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24632
    DOI: 10.22004/ag.econ.24632
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    2. Ferto, Imre, 2006. "Reconsidering Adjustment Costs of the Association Agreement. The Case of Hungarian Food Industry," 2006 Annual meeting, July 23-26, Long Beach, CA 21037, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Lukasz Ambroziak, 2024. "Intra-Industry Trade in Agri-Food Products: The Case of Poland and Ukraine," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 362-382.
    4. Matteo Aepli, 2011. "Intra-industrieller Handel und Wettbewerbsfähigkeit der Schweizer Nahrungsmittelindustrie," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 4(1), pages 245-267.
    5. Imre Ferto, 2009. "Labour Market Adjustment and Intra‐Industry Trade: The Effects of Association on the Hungarian Food Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 668-681, September.
    6. Božić, Dragica & Nikolić, Marija M., 2013. "Regional Analysis of Agricultural and Food Trade of Serbia," 135th Seminar, August 28-30, 2013, Belgrade, Serbia 160374, European Association of Agricultural Economists.
    7. Fertő, Imre, 2006. "A társulási szerződés alkalmazkodási költségei a magyar élelmiszeriparban [The adjustment cost of the Association Agreement in the Hungarian food industry]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 799-811.

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    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

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