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Intra-Industry Trade in Agricultural Products: The Case of China

Author

Listed:
  • Wang Jing
  • Nuno Carlos Leitão
  • Horácio C. Faustino

Abstract

This paper studies the extent and determinants of intra-industry trade (IIT) in agricultural products of China for the period 1997-2006. The IIT index shows that the level of IIT in agricultural products between China and its thirteen main trading partners is not high. Using a panel data analysis, the empirical results of determinants of IIT indicate that differences in per-capita income and geographical distance have a negative effect on Chinese IIT in agricultural products. Free trade agreements between China and some trading partners weaken the negative effect of per-capita income differences on IIT. The results also suggest that cultural similarity between China and some countries has a positive influence on this type of trade.

Suggested Citation

  • Wang Jing & Nuno Carlos Leitão & Horácio C. Faustino, 2010. "Intra-Industry Trade in Agricultural Products: The Case of China," Working Papers Department of Economics 2010/06, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    • Handle: RePEc:ise:isegwp:wp62010
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    References listed on IDEAS

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    1. Egger, Hartmut & Egger, Peter & Greenaway, David, 2007. "Intra-industry trade with multinational firms," European Economic Review, Elsevier, vol. 51(8), pages 1959-1984, November.
    2. Xiaoling Hu & Yue Ma, 1999. "International intra-industry trade of China," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(1), pages 82-101, March.
    3. Steve McCorriston & Ian M. Sheldon, 1991. "Intra-Industry Trade and Specialization in Processed Agricultural Products: The Case of the US and the EC," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 13(2), pages 173-184.
    4. Michael Thorpe & Zhaoyang Zhang, 2005. "Study of the Measurement and Determinants of Intra‐industry Trade in East Asia," Asian Economic Journal, East Asian Economic Association, vol. 19(2), pages 231-247, June.
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    Cited by:

    1. Poornima Varma, 2012. "An analysis of India’s bilateral intra-industry trade in agricultural products," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 83-95.
    2. Pawlak, Karolina & Kołodziejczak, Małgorzata & Xie, Yumei, 2016. "Changes In Foreign Trade In Agri-Food Products Between The Eu And China," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 42(4).

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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