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Analysis of Intra-Industry Trade in Agri-Food Products Between Bosnia and Herzegovina and the European Union

Author

Listed:
  • Brkić Snježana

    (PhD, Associate Professor School of Economics and Business, University of Sarajevo)

  • Kastratović Radovan

    (PhD Teaching Assistant University of Belgrade, Faculty of Economics Belgrade, Republic of Serbia)

  • Salkica Mirela Abidović

    (MSc Senior Assistant Faculty for Technical Studies, University of Travnik, Travnik, Bosnia and Herzegovina)

Abstract

Although research of intra-industry trade (IIT) has been intensive in the last several decades, the empirical literature focusing on this phenomenon in the Western Balkans countries remains limited, especially in agricultural sector. Aiming to contribute to the existing literature, the paper analyses patterns and country-specific determinants of IIT in agri-food products between Bosnia and Herzegovina (BiH) and the European Union (EU) during the period of their mutual trade liberalisation (2008-2018). The analysis employs Grubel-Lloyd indices and Greenaway-Hine-Milner methodology for measurement of IIT, and applies an econometric panel data model using a Poisson Pseudo-maximum likelihood approach in order to estimate effects of IIT determinants. The findings suggest that intra-industry agri-food trade of BiH with the EU is of low intensity and mainly of vertical nature, viewed totally and bilaterally. We found significant positive effects of trading countries’ sizes, common border and history on IIT, and negative effects of the geographic distance and differences in agricultural productivity.

Suggested Citation

  • Brkić Snježana & Kastratović Radovan & Salkica Mirela Abidović, 2021. "Analysis of Intra-Industry Trade in Agri-Food Products Between Bosnia and Herzegovina and the European Union," South East European Journal of Economics and Business, Sciendo, vol. 16(2), pages 53-67, December.
    • Handle: RePEc:vrs:seejeb:v:16:y:2021:i:2:p:53-67:n:1
    DOI: 10.2478/jeb-2021-0014
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    References listed on IDEAS

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    More about this item

    Keywords

    Intra-industry trade (IIT); agri-food products; Bosnia and Herzegovina (BiH); the European Union (EU); Poisson Pseudo-maximum likelihood (PPML) approach;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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