Intra-industry Trade Research Articles

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

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

Food Self-Sufficiency in the Honey Market in Poland

Looking from the perspective of the importance of beekeeping production for agriculture, and its impact on production sustainability, biodiversity and food security, research on food self-sufficiency in the honey market is important. The aim of this article was to assess food self-sufficiency in the honey market in Poland in terms of the sustainability of production. The research covered the years 2002–2023. The research material consisted of secondary sources of information from the FAOSTAT 2024 database, reports of the Institute of Horticulture, Department of Beekeeping in Puławy, and market reports of IERiGŻ-PIB. The research used dynamic indicators, Pearson’s correlation coefficient, self-sufficiency ratios (SSR) and intra-industry trade (IIT) indicators. The analysis showed that Poland is not food self-sufficient in honey production. Environmental issues and related food security will be important for a change in the model of beekeeping in Poland, as this sector plays an important role in maintaining sustainability and biodiversity; hence, the assessment of food self-sufficiency in honey production should be treated broadly, including the benefits for agriculture.

Mapping trade opportunities in Central and South Asia: an exploration through trade indices and metrics

Purpose This study aims to explore the possibilities for regional (intra and inter) trade between Central Asia and South Asia (CASA) by examining several frameworks that impact the economic integration of these regions. Design/methodology/approach The study uses five indices, specifically the export diversification index, export survival rates, export sophistication, revealed comparative advantage and intra-industry trade index in South and Central Asia, from 2005 to 2021. Findings The findings show a twofold increase in the potential trade value between the two regions compared to the actual level. The intra-regional trade in Central Asia accounts for less than 5% of trade with all countries, whereas the intra-regional trade in South Asia accounts for 1.5%, and the inter-regional trade accounts for between 0.2 and 4% of total trade to all destinations. The intensity of trade measurements shows that inter-regional trade flows are modest because they make up a relatively small percentage of the entire trade volume, which includes all destinations, ranging from 0.2 to 4 %. Research limitations/implications These findings have a significant impact on the successful implementation of trading-related measures, initiatives and institutional mechanisms for encouraging improved trade between and within both regions. Practical implications Export diversification initiatives aim to provide favourable outcomes for all parties involved, focusing on expanding the range of goods and services exchanged. CASA countries with higher diversification have shown more favourable outcomes than those relying on a restricted range of products. The authors expect policies promoting a broader array of exports to boost market shares, while maintaining a narrow focus may hinder new export prospects. In addition, regional value chains and policy initiatives promoting trade and investment could lead to increased value additions to exports, technological transfers and job creation. Social implications The study emphasises the significance of trade-related policies, programmes and institutional mechanisms in promoting trade between CASA. It emphasises the need for policies that support investment and trade, adopt new requirements of the Agreement on Trade Facilitation and promote diversity and latency. Originality/value Based on economic analysis, the study offers practical insights and strategies for businesses in the CASA regions. It also provides analytical tools for academics and decision makers, as well as policy and programme recommendations for government agencies, development partners, researchers and individuals interested in trade dynamics in these regions.

Current trends and prospects for intra-industry trade of dairy products in Russian-Belarusian transborder regions

Current trends and prospects for intra-industry trade of dairy products in Russian-Belarusian transborder regions

Determinants of Horizontal and Vertical Intra-Industry Trade of Indonesian Manufacturing with ASEAN-4

Intra-industry trade between Indonesia and some neighbouring countries like the Philippines, Malaysia, Thailand, and Vietnam can be characterised as an imperfectly competitive market and be driven by increasing returns to achieve economies of scale. This research investigates the dynamics of Indonesia's intra-industrial trade in the manufacturing industry with ASEAN-4 countries, namely the Philippines, Malaysia, Thailand, and Vietnam, from 2005 to 2021. The independent variables used are the difference in Gross Domestic Product (GDP), real exchange rate, and Foreign Direct Investment (FDI). We also estimate the Grubel-Lloyd Index and decompose the intra-industry trade either dominated by vertical or horizontal intra-industry trade. The data is then analysed by the panel data method. Our findings show that intra-industry trade taking place in the region has a strong level dominated by vertical intra-industry trade, resulting in goods traded of different quality. Next, the variable of difference in GDP has a significant negative effect on intra-industry trade, the variable of the real exchange rate has a significant positive impact, and FDI has a positive and not significant effect.

Assessing Italy’s Comparative Advantages and Intra-Industry Trade in Global Wood Products

Assessing Italy’s Comparative Advantages and Intra-Industry Trade in Global Wood Products

Measuring intra-industry trade and productivity in the South African pharmaceutical sector

Background: The South African pharmaceutical sector is Africa’s largest and most advanced but heavily depends on imported products and active pharmaceutical ingredients to meet its demands. The status quo is due to low intra-industry trade, which is necessary to induce innovation and technological progress essential for accelerating local production, export growth and reducing dependence on imports.Aim: The primary objective of this article was to examine intra-industry trade in South Africa’s pharmaceutical sector and subsequently, total factor productivity (TFP) as a key driver of intra-industry trade.Setting: Intra-industry trade was measured using data obtained from the United Nations Conference on Trade and Development databases, while the TFP was measured using data from the South African Reserve Bank (SARB) covering 2001–2021.Method: The marginal intra-industry trade index (MIIT) and unmatched changes in trade (UMCIT) were used to measure intra-industry trade, while the Malmquist total factor productivity (MTFP) index was used to analyse SARB data to determine TFP.Results: The MIIT index and UMCIT revealed that trade is predominantly inter-industry with episodes of industry specialisation and significant intra-industry changes. The MTFP results showed that TFP is solely driven by technical changes.Conclusion: The study recommends that South Africa should develop a coordinated and sustainable innovation system in the pharmaceutical sector. This will help prevent sporadic technological advancements and promote intra-industry trade.Contribution: The article contributes to the empirical literature on intra-industry trade in developing countries by showing the correlation between an improvement in TFP and an increase in intra-industry trade necessary to stimulate domestic production to reduce high import demand.

Study on Economic Convergence Employing the 2.2.2 Model of Heckscher-Ohlin

This article presents a methodology to estimate disparities in factor endowments in a dynamic Heckscher-Ohlin model. The model integrates a static approach to intraindustry trade of two goods and two factors. By employing a Cobb-Douglas production function model (2 goods, 2 factors), we identify convergences and divergences in production, influenced by the elasticity of substitution between inputs. Our findings illustrate that, even if factor prices equalize, countries differing only in their initial capital-to-labor ratios may converge or diverge in income levels over time. Divergence can occur for parameter values that would imply convergence in a world of closed economies, and open ones. Received: 15 March 2024 / Accepted: 16 June 2024 / Published: 02 July 2024

Examining the impact of intra-industry trade on business cycle alignment within the ECOWAS

PurposeThis paper aims to examine the impact of intra-industry trade on business cycle synchronization within the Economic Community of West African States (ECOWAS). ECOWAS region is characterized by limited intracommunity trade and a low level of foreign direct investment.Design/methodology/approachFirst, this research uses the two-digit level harmonized system classification to measure intra-industry trade, which is straightforward to interpret and compute, making it suitable for countries with low trade intensity. Second, it uses the system generalized method of moments (system-GMM) to examine the dynamic relationship between variables and address endogeneity concerns.FindingsThe results obtained from the system-GMM estimation reveal a positive and significant correlation between intra-industry trade intensity and business cycle synchronization, as well as an inhibiting effect of economic freedom on the relationship between intra-industry trade and business cycle synchronization. These results highlight the need to implement policies aimed at reducing tariff barriers, improving financial integration and intensifying production.Originality/valueThis research analyze the link between intra-industry trade and business cycle synchronization within the ECOWAS. It also analyze the role of economic freedom on the link between intra-industry trade and business cycle synchronization.

The Influence Of Gravity Model And Intra Industry Trade Factors On Indonesian Tourism Demand From Ten Countries

The health emergency conditions during the Covid-19 pandemic which also had an impact on the global social and economic crisis, the tourism sector was one of the sectors most negatively affected, especially the decline in tourist visits due to the travel restriction policy. This condition also affects the contribution of the tourism sector to the national economy. This research was conducted to observe the impact of factors in the gravity model and intra-industry trade, including relative distance, GDP per capita, tourism sector integration, and exchange rates on tourism demand in Indonesia from ten countries during 2017-2022 on 60 data samples with observation techniques and panel data regression model observations. Results were obtained which stated that the relative distance variable and GDP per capita had a negative effect on Indonesian tourism demand, conversely the integration of the tourism sector had a positive effect on Indonesian tourist demand, while the exchange rate variable had no significant impact on housing tourism demand in Indonesia from ten countries in 2017-2022.

International emissions trading and the distribution of capital

This paper compares two regimes of tradable emission permits, a regime with international permit trade (IPT) and a regime with domestic permit trade (DPT). We focus on the effects of the distribution of firms between countries. Our model combines intra-industry trade with a monopolistically competitive industry. We find that a more equal distribution of firms between countries results in higher global pollution under the DPT regime, while under the IPT regime the global pollution is invariant with the distribution of firms. We also find that international permit trade can either increase or reduce global pollution, depending on the distribution of firms.

Determinants of Intra-Industry Pharmaceutical Trades in China and its Primary Global Partners

This study examined the relationship between knowledge sharing, gross domestic product, economic development, and global demand on competitive advantage among intra-industry trade among pharmaceutical companies operating in China and its international partners. ⁤ It presented the demographic profile, key variables on the workforce, years founded, annual income, and several indicators using a Likert scale questionnaire. The research utilized a quantitative methodology that incorporated multi-regression analysis, ⁤⁤to find trends, patterns, and correlations using the following statistical treatment frequency, percentage, mean, median, standard deviation, and multiple regression. The study highlighted the need for proactive measures and focused approaches to enhance knowledge exchange within firms and the value of GDP in supporting economic growth and in making strategic decisions. The study underscores the need for comprehensive methodologies and strategic positions in formulating policies for long-term growth. It also presented the impact of knowledge sharing, GDP, economic development, and global demand on competitive advantage, emphasizing the need for proactive tactics and strategic considerations affecting economic development.

Does the "Belt and Road Initiative" benefit the environment? Insight from analysis of intra-industry trade in environment goods.

The expansion of the Belt and Road Initiative (BRI) has raised a wide range of concerns about its environmental impact. Therefore, from the perspective of environmental impacts, this study used the two-way fixed effect staggered differences in differences (TWFE Staggered DID) method to examine the impact of the BRI on the Environment Goods (EGs) intra-industry trade (IIT) between China and other Belt and Road (B&R) countries, including a sample of 191 countries, covering the period from 2010 to 2019 for eliminating the impact of COVID-19 and the financial crisis in 2008 and 2009. Because only 135 countries signed a Memorandum of Understanding between 2010 and 2019, this study treated these B&R countries as the study group, and the other 73 countries (non-B&R countries) as the control group. This study described EGs using the 54 6-digit code Environment Goods in Harmonized Commodity Description and Coding System listed in the "APEC LIST OF ENVIRONMENT GOODS" published by the Asia-Pacific Economic Cooperation in 2012, and used the intra-industry trade index proposed by Grubel and Lloyd in 1971 to measuring dependent variable. The research results indicated that the BRI has significantly promoted bilateral EGs IIT. The mechanism test implied that, in addition to direct impacts, the BRI also has indirect impacts by boosting the energy restructuring of B&R countries. These results prove that the BRI has positive impacts on the environment. The heterogeneity test showed that there is a heterogeneous impact depending on the type of IIT, product categorization, B&R countries' income levels, and geographic environment. This study not only gives theoretical and empirical evidence of the positive environmental impacts of the BRI, but also provides practical guidance for the development of EGS IIT between China and B&R countries, thereby contributing to global carbon emissions reduction and environmental governance to some degree.

EU, 미국, 중국시장에서 한국 신재생에너지 산업의 품목별 수출 품질경쟁력과 시장점유율 변화 요인 분석

This study applied product and market segment analysis (PMSA) and intra-industry trade (IIT) indices to capture the quality and price competitiveness and high- and low-quality IIT of new renewable energy (NRE) items in Korea’s trade with major economic powers (i.e., European Union [EU], United States, and China) for the period 2012-2022. Additionally, this study used the constant market share (CMS) technique to divide the causes of fluctuations in Korea's market share in large economies’ import markets into demand side, supply side, and adaptation side. The empirical results can be summarized in the following three points. First, PMSA of quality and price competitiveness confirmed Korea’s weakness in securing price and quality competitiveness in trade with the EU and the United States and Korea’s inability to secure price competitiveness in trade with China. Additionally, analysis of high- and low quality IIT showed that in trade with the EU, low-quality vertical IIT and horizontal IIT were mixed, whereas in trade with the United States and China, the majority of items showed low-quality vertical IIT and high-quality vertical IIT patterns, respectively. More importantly, the CMS results by item in the NRE industry based on the 2017/2022 period showed that in the EU and US import markets, supply factors caused most of the market share changes for the majority of items, and in the Chinese import market, the main causes were a mixture of supply and demand factors. In conclusion, policy and institutional support for research and development of independent and convergence technologies are needed to strengthen the NRE industry’s quality competitiveness, and market expansion of the NRE industry can be accomplished by expanding direct investment in the United States and the EU, as well as through government financial support.

Daya Saing Dan Komplementaritas Perdagangan Kayu Indonesia: Kasus Kawasan Asia-Pasifik

Indonesia trades ten groups of wood in the Asia-Pacific region. Many forest industry problems occur during trade. Competition and interdependence in trade are research objectives. The research secondary data source is taken from UN Comtrade 2011-2021 and analyzed using the Export Similarity Index (ESI), Revealed Comparative Advantage (RCA), Trade Complementarity Index (TCI), and Intra-Industry Trade (IIT) methods. The research results show that the wood export trade between Indonesia and competing countries competes weakly with each other in the six partner countries. Indonesia is competitive in the products SITC 245 (fuel wood (excluding wood waste) and wood charcoal), SITC 248 (wood, simply worked, and railway sleepers of wood), SITC 251 (pulp and waste paper), SITC 634 (veneers, plywood, particle board, and other wood, worked, n.e.s.), SITC 635 (wood manufactures, n.e.s.), and SITC 641 (paper and paperboard). On the other hand, Indonesia and partner countries almost complement each other as trading partners in terms of exports and imports of wood. However, the integration of Indonesian wood trade with partner countries is considered weak. Products SITC 248 (wood, simply worked, and railway sleepers of wood), SITC 251 (pulp and waste paper), SITC 641 (paper and paperboard), and SITC 642 (paper and paperboard, cut to size or shape, and articles of paper or paperboard) are several product industries that have led to intra-industry trade. Policy recommendations are to utilize resources optimally, develop the wood processing industry to produce finished wood products, and improve the quality and standards of wood products in accordance with policies in trade cooperation.

Reflections on China-India Economic and Trade Relations from the Perspective of Industrial Structure

China and India are adjacent to each other and are the top two developing countries in the world in terms of population, and the different industrial structures of the two countries have a specific impact on the economic and trade cooperation between the two countries. The article firstly analyzes the industrial structure of China's strong industry and India's strong service industry and the status quo of bilateral trade, and summarizes the problems of small trade volume, unidirectional dependence between India and China, political hostility hindering economic and trade cooperation, and the two countries' industries' complementarities are greater than competitiveness through calculations and comparisons. Based on the theory of industrial complementarities, the article proposes accordingly to increase intra-industry trade, improve the investment environment, encourage investment and technological cooperation, participate in the global value chain, set up a free trade zone and strengthen the cooperation in multilateral mechanisms, and establish a free trade zone. The establishment of free trade zones and the strengthening of economic and trade cooperation in multilateral mechanisms are six proposals.

DAYA SAING EKSPOR KOMODITAS TEMBAKAU INDONESIA SELAMA PANDEMI COVID-19

<em><span lang="EN-US">The excise contribution from the Tobacco Products Industry (IHT) in 2020 amounted to Rp170.24 trillion or 96.56% of all Indonesian excise revenue. The Covid-19 pandemic caused tobacco exports in 2020 to decrease by 6.41% or 2,134 tons. Based on these conditions, it is necessary to research the competitiveness of tobacco exports during the Covid-19 pandemic in the main destination countries. The method of determining the location used is a purposive method, namely in Belgium, Singapore, Dominican Republic, Sri Lanka, Germany, the Netherlands, and the United States. The data used is time series data for 38 months starting from August 2018 to September 2021. The analysis methods used are IIT (Intra Industry Trade), RCA (Revealed Comparative Advantage), and EPD (Export Product Dynamic). The results showed a) IIT analysis, that most countries experienced a decline during the Covid-19 pandemic. Countries that experienced a decrease were the Netherlands, Dominican Republic, Singapore, and Sri Lanka, while those that experienced an increase were Belgium, Germany, and the United States. b) RCA analysis in the seven main destination countries showed a strong position. c) EPD analysis of most of the main destination countries for tobacco exports showed positive results, except for the United States which experienced a decrease.</span></em>

Inter-industry trade and business cycle dynamics

Abstract Motivated by the increased importance of trade between industrialized and less-developed countries, we build a two-sector dynamic stochastic general equilibrium model featuring inter-industry trade as well as intra-industry trade to analyze the business cycle dynamics of industrialized countries. We find that import-competing sectors are more sensitive to domestic productivity shocks than exporting sectors, due to their stronger reliance on domestic demand. This generates pressure to adjust relative prices and to reallocate factors of production. It also propagates the international spillover effects of productivity shocks leading to stronger business cycle comovement across countries, relative to a traditional business cycle model that does not feature inter-industry trade.

Economic policy uncertainty, intra-industry trade, and China's mechanical and electrical product exports.

Economic policy uncertainty has had an important impact on trade and sustainable economic development. Especially in some specific industries, uncertainty has increased dramatically. The extant related literature mainly analyzes the nexus between uncertainty and trade across different industries and focuses less on a specific industry. Using Chinese customs data on HS 8-digit products over the period of 2000-2013, this paper first investigates the impact of both foreign economic policy uncertainty (EPU) and domestic intra-industry trade on China's mechanical and electrical product exports to 23 trading partners and applies pooled OLS regressions to conduct an empirical study. This paper finds that EPU has a significant inhibition effect on mechanical and electrical product exports; conversely, intra-industry trade can both significantly promote exports and alleviate the inhibition effect of EPU. In addition, the export impact of EPU varied with different trade patterns. It can significantly inhibit processing exports, while it has no effect on ordinary exports. The results of this paper indicate that in the context of increasing uncertainty, our findings could have far-reaching policy implications for China to build a new development pattern of domestic and international dual circulation.

Status of Sino–Russian Trade in Agricultural Products: Dual Consideration Based on Characteristics and Growth

The security of agricultural product supply is crucial for social development. For populous and resource-rich countries like China and Russia, strengthening their bilateral trade in agricultural products is essential to ensure stability and security in the global food market. However, current research on their agricultural product trade lacks sufficient detail. This article aims to analyze the overall trend of agricultural product trading between China and Russia based on trade data from 2007 to 2021. Different trade indexes will be used to examine the four aspects of the agricultural product trade characteristics of both countries. The constant market share model will be employed to analyze the growth factors of agricultural product trade between the two nations, providing insights into the driving force behind changes in agricultural exports. The findings of this study demonstrate that bilateral agricultural trade between China and Russia shows complementarity and high trade intensity. Intra-industry trade represents the primary form of agricultural product exchange, while inter-industry trade serves as a supplemental form of trade. In terms of trade growth impact, the bilateral agricultural trade between China and Russia is primarily influenced by the effect of product structure, followed by competitiveness. Therefore, in the face of uncertain situations, such as counter-globalization and localized trade frictions, specific recommendations will be provided to optimize the trade structure of agricultural products between the two nations.