Hostname: page-component-7479d7b7d-8zxtt Total loading time: 0 Render date: 2024-07-13T00:03:22.876Z Has data issue: false hasContentIssue false
  • English
  • Français

A Cross-Section Analysis of Intra-Industry Trade in the U.S. Processed Food and Beverage Sectors

Published online by Cambridge University Press:  15 September 2016

Darcy A. Hartman ,
Dennis R. Henderson  and
Ian M. Sheldon
Darcy A. Hartman
Affiliation:
Department of Agricultural Economics and Rural Sociology, The Ohio State University
Dennis R. Henderson
Affiliation:
Department of Agricultural Economics and Rural Sociology, The Ohio State University
Ian M. Sheldon
Affiliation:
Department of Agricultural Economics and Rural Sociology, The Ohio State University
Get access

Abstract

This paper analyzes the determinants of variation across industries in levels of intra-industry trade (IIT) for a sample of thirty-six U.S. processed food and beverage industries in 1987, previous studies of intra-industry trade having focussed on industry characteristics in the manufacturing sectors. The determinants predicted by IIT theory are measures of product differentiation, economies of scale, and imperfect competition; the results of this analysis indicate that IIT variation across the food and beverage industries is positively related to product differentiation, economies of scope, and similarity of tariff barriers among trade partners, but negatively related to industry concentration.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 22 , Issue 2 , October 1993 , pp. 189 - 198
Copyright
Copyright © 1993 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Aquino, A. “Intra-Industry Trade and Inter-Industry Specialization as Concurrent Sources of International Trade in Manufactures.” Weltwirtschaftliches Archiv 114 (1978): 275–95.Google Scholar
Balassa, B. Economic Development and Integration. Centro de Estudios Monetarios Latinoamericos, Mexico (1965).Google Scholar
Balassa, B. “Intra-Industry Trade and the Integration of Developing Countries in the World Economy.” Staff Working Paper 312, The World Bank (1979).Google Scholar
Balassa, B. “The Determinants of Intra-Industry Specialization in United States Trade.” Oxford Economic Papers 38 (1986): 220–33.Google Scholar
Balassa, B., and Bauwens, L. “Intra-Industry Specialization in a Multi-Country and Multi-Industry Framework.” Economic Journal 97 (1987): 923–39.Google Scholar
Baumol, W.J., Bailey, E.E., and Willig, R.D. “Weak Invisible Hand Theorems on the Sustainability of Multiproduct Natural Monopoly.” American Economic Review 67 (1977): 350–65.Google Scholar
Brander, J.A., and Krugman, P. “A Reciprocal Dumping Model of International Trade.” Journal of International Economics 13 (1983): 313–21.Google Scholar
Caves, R.E. “Intra-Industry Trade and Market Structure in the Industrial Countries.” Oxford Economic Papers 32 (1981): 202–23.Google Scholar
Census of Manufactures-1987. Bureau of the Census. U.S. Department of Commerce. Industry Series MC87-1-20 A-I (1990) and MC87-S-6 (1992).Google Scholar
Christodoulou, M. “Intra-Industry Trade in Agrofood Sectors: The Case of the EEC Meat Market.” Applied Economics 24 (1992): 875–84.Google Scholar
Connor, J.M., Rogers, R.T., Marion, B.W., and Mueller, W.F. The Food Manufacturing Industries: Structures, Strategies, Performance, and Policies. Massachusetts: Lexington (1985).Google Scholar
Cox, D., and Harris, R. “Trade Liberalization and Industrial Organization: Some Estimates for Canada.” Journal of Political Economy 93 (1985): 115–45.Google Scholar
Dayton, J.R., and Henderson, D.R. “Patterns of World Trade in Processed Food.” OP-32, NC-194, The Ohio State University (1992).Google Scholar
Dixit, A., and Stiglitz, J.E. “Monopolistic Competition and Optimum Product Diversity.” American Economic Review 67 (1977): 297–332.Google Scholar
Drabek, Z., and Greenaway, D. “Economic Integration and Intra-Industry Trade: The EEC and CMEA Compared.” Kyklos 37 (1984): 444–69.Google Scholar
Falvey, R.E. “Commercial Policy and Intra-Industry Trade.” Journal of International Economics 11 (1981): 491–511.Google Scholar
Food Marketing Review, 1988. Economic Research Service, USDA. Agricultural Economic Report No. 614 (1989).Google Scholar
Fung, K.C. “Collusive Intra-Industry Trade.” Canadian Journal of Economics 24 (1991): 391–404.Google Scholar
Glejser, H., Jacquemin, A., and Petit, J. “Exports in an Imperfect Framework: An Analysis of 1,466 Exporters.” Quarterly Journal of Economics 84 (1980): 507–24.Google Scholar
Greenaway, D., and Milner, C. “A Cross-Section Analysis of Intra-Industry Trade in the U.K.” European Economic Review 25 (1984): 319–44.Google Scholar
Greenaway, D., and Milner, C. The Economics of Intra-Industry Trade. Oxford: Basil Blackwell (1986a).Google Scholar
Greenaway, D., and Milner, C. “Growth and Significance of Intra-Industry Trade.” Paper presented at the International Economics Study Group (1986b).Google Scholar
Grubel, H.G., and Lloyd, P.J. Intra-Industry Trade. London: MacMillan (1975).Google Scholar
Hart, T., and McDonald, B.J. Intra-Industry Trade Indexes for Canada, Mexico, and the United States, 1962-87. Agriculture and Trade Analysis Division, Economic Research Service, USDA. Staff Report No. AGES9206 (1992).Google Scholar
Havrylyshyn, O., and Civan, E. “Intra-Industry Trade and the Stage of Development: A Regression Analysis of Industrial and Developing Countries” In Intra-Industry Trade edited by Thasrakan, P.K.M. Amsterdam: North Holland (1983).Google Scholar
Helpman, E. “International Trade in the Presence of Product Differentiation, Economies of Scale, and Monopolistic Competition.” Journal of International Economics 11 (1981): 305–40.Google Scholar
Helpman, E. “Imperfect Competition and International Trade: Evidence from Fourteen Industrial Countries.” Journal of the Japanese and International Economies 1 (1987): 62–81.Google Scholar
Helpman, E., and Krugman, P.R. Market Structure and Foreign Trade. Cambridge, MA: MIT Press (1985).Google Scholar
Helpman, E., and Krugman, P.R. Trade Policy and Market Structure. Cambridge, MA: MIT Press, (1989).Google Scholar
Hirschberg, J.G., Sheldon, I.M., and Dayton, J.R. “An Analysis of Bilateral Intra-Industry Trade in the Food Processing Sector.” Applied Economics (forthcoming).Google Scholar
Krugman, P.R. “Increasing Returns, Monopolistic Competition and International Trade.” Journal of International Economics 9 (1979): 469–79.Google Scholar
Krugman, P.R. “Scale Economies, Product Differentiation and the Pattern of Trade.” American Economic Review 70 (1980): 950–9.Google Scholar
Krugman, P.R. “Intra-Industry Specialization and the Gains from Trade.” Journal of Political Economy 89 (1981): 959–73.Google Scholar
Lancaster, K. “Intra-Industry Trade under Perfect Monopolistic Competition.” Journal of International Economics 10 (1980): 151–76.Google Scholar
Leamer, E.E. “Testing Trade Theory.” Working Paper No. 3957, National Bureau of Economic Research (1992).CrossRefGoogle Scholar
Lyons, B. “An Empirical Investigation of UK Manufacturing Trade with the World and the E.E.C.: 1968 and 1980” In The Convergence of International and Domestic Markets. edited by Audretsch, David, Sleuwaegen, Leo, and Yamawaki, Hideki. North-Holland: Elsevier (1989).Google Scholar
McCorriston, S., and Sheldon, I.M. “Intra-Industry Trade and Specialization in Processed Agricultural Products: The Case of the U.S. and the E.C.” Review of Agricultural Economics 13 (1991): 173–84.Google Scholar
Pagoulatos, E., and Sorenson, R. “Two Way International Trade: An Econometric Analysis.” Weltwirtschaftliches Archiv 11 (1975): 454–65.Google Scholar
Posner, M.V. “International Trade and Technical Change.” Oxford Economic Papers 13 (1961): 323–41.Google Scholar
Richardson, J.D. “Empirical Research on Trade Liberalization with Imperfect Competition: A Survey.” OECD Economic Studies 12 (1989): 7–50.Google Scholar
Schmalensee, R. “Inter-Industry Studies of Structure and Performance.” In Handbook of Industrial Organization edited by Schmalensee, Richard and Willig, Robert D. Amersterdam: North-Holland (1989).Google Scholar
Sheldon, I.M. “Intra-Industry Trade and Specialization in Processed Agricultural Products: Theory and Issues.” OP-2, NC-194, Ohio State University (1992).Google Scholar
Smith, A., and Venables, A. “Completing the Internal Market in the European Community-Some Industry Simulations.” European Economic Review, 32 (1988): 1501–1525.Google Scholar
Spence, A.M. “Trade and Trade Policy with Differentiated Products.” Review of Economic Studies 43 (1976): 217–36.Google Scholar
Sutton, J. Sunk Costs and Market Structure. Cambridge, MA: MIT Press (1991).Google Scholar
Tharakan, P.K.M. “Empirical Analyses of the Commodity Composition of Trade.” in Current Issues in International Trade edited by Greenaway, David. London: Macmillan.Google Scholar
Toh, K. “A Cross-Section Analysis of Intra-Industry Trade in U.S. Manufacturing Industries.” Weltwirtschaftliches Archiv 118 (1982): 282–301.Google Scholar
United Nations External Trade Data. Statistical Office of the United Nations, New York (1989).Google Scholar
Venables, A., and Smith, A. “Trade and Industrial Policy under Imperfect Competition.” Economic Policy 3 (1986): 622–72.Google Scholar
Verdoorn, P.J. “The Intra-Bloc Trade of Benelux” In Economic Consequences of Nations, Proceedings of a Conference Held by the International Economic Association. London (1960).Google Scholar