Nafta Intra Industry Trade In Agricultural Food Products

Western Agricultural Economics Association, 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 01/1999;
Source: RePEc


In this paper we examine the impact of membership in Preferential Trade Agreements (PTAs) on trade between PTA members. Rather than considering the impact of PTA membership on the volume of trade we consider the impact of membership on the structure of trade. For a large sample of countries over the period 1962-2000 we find that membership in a PTA is associated with an increase in the extent of intra-industry trade. In addition, we find that the effect of PTA membership on IIT is larger when a PTA is formed between two developed countries.

Download full-text


Available from: Scott William Fausti
  • Source
    • "Most studies of intra-industry trade exclude the agriculture sector. Empirical studies on IIT in this sector have been limited with some exceptions (Pelzman, 1977; McCorriston and Sheldon, 1991; Hirschberg et al., 1994; Neff et al., 1996; Qasmi and Fausti, 2001; Sharma, 2002). The objective of this study was to analyze some of the determinants of agriculture IIT in United States. "
    [Show abstract] [Hide abstract]
    ABSTRACT: This study analyses the determinants of United State’s intra-industry trade (IIT) applied to the agriculture sector. The results indicate that IIT in this sector is a negative role of the difference in GDP per capita between U S. and its trade partners. This is according to the literature; that is, countries with similar demands will trade similar products. Statistically strong evidence is also found that this trade is influenced by the economic dimension between trading partners. The foreign direct investment inflowshave a positive influence on U.S. bilateral IIT.
    Full-text · Article · Jan 2011 · African journal of agricultural research
  • Source
    • "However, differences in technology yielded a significantly positive coefficient only in the vertical IIT model which is consistent with the theory of the vertical IIT. Qasmi and Fausti (2001) made an attempt to evaluate the impact of NAFTA on inter-and intraindustry trade in agri-food products in North America and in the rest of the world. They used OECD's SITC Rev. 3 data for 23 agricultural products that include meat, meat products, dairy products, grains and cereal products, processed fruits and vegetables and other related products for 1990 and 1995. "

    Full-text · Article · Jan 2006
  • [Show abstract] [Hide abstract]
    ABSTRACT: Abstract Abstract Abstract This paper attempts to investigate the patterns and determinants of the share of vertical intra-industry trade (VIIT) in the agri-food sector between Japan and East Asian countries from 1997 to 2005. Our empirical results show that the large portion of agri-food trade between Japan and East Asian countries is still one-way trade while intra-industry trade, particularly VIIT has not grown rapidly from 1997 to 2005. However, we find a positive relationship between factor endowment and VIIT. Particularly, the fact that Japan imports high-quality agri-food products more than exports reflects in the opposite direction of quality ladder story based on Flam and Helpman type vertically differentiated trade models.
    No preview · Article ·
Show more