Vertical intra-industry trade and the EU accession: The case of Hungarian agri-food sector

Fertő, Imre and Jámbor, Attila (2013) Vertical intra-industry trade and the EU accession: The case of Hungarian agri-food sector. In: 87th Annual Conference of the Agricultural Economics Society, 8 - 10 April 2013, University of Warwick, United Kingdom.

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The aim of this paper is to examine the relationship between the factor endowment and the pattern of intra-industry trade. Our empirical analysis relates to Hungary’s intra-industry trade in agri-food products with 26 member states of the EU over the period 1999-2010. Estimations reject the comparative advantage explanation of vertical intra-industry trade and provide partial support the prediction of Flam and Helpman model. Findings highlight that nature of factor endowments play also important role in explanation of vertical intra-industry trade. Other variables like market size and distance confirm the theoretical expectations. In addition, trade with new member states positively, whilst the EU accession ambigouosly influence the share of vertical IIT.

Item Type:Conference or Workshop Item (Paper)
Uncontrolled Keywords:Vertical intra-industry trade, agri-food products, EU accession, JEL codes: F14, F15, Q17
Divisions:Faculty of Business Administration > Institute for Environmental Science > Department of Agricultural Economics and Rural Development
Subjects:Commerce and tourism
ID Code:1170
Deposited By: Ádám Hoffmann
Deposited On:16 Apr 2013 08:15
Last Modified:16 Apr 2013 08:15

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