Intra-Industry Trade in Agri-Food Products between Hungary and the EU

Imre Ferto, Lionel James Hubbard
2001 Social Science Research Network  
We present an analysis of the intra-industry nature of agri-food trade between Hungary and the European Union, following the Association Agreement signed in 1991. A slight growth in intra-industry trade is indicated by the Grubel-Lloyd index. However, it is not uniform by product group or EU member state or over time, reflecting different patterns of bilateral integration and an economic restructuring process that is far from complete. Marginal intraindustry trade appears to be low, but assumes
more » ... greater significance when the index is broadened to include vertical as well as horizontal trade. Thus, growth in agri-food trade between Hungary and the EU over the period 1992-98 is shown to be dominated by vertical intraindustry trade and inter-industry trade. Adjustment costs due to partial trade liberalisation are likely therefore to have been relatively high.
doi:10.2139/ssrn.286153 fatcat:g5w7hhpssfefhi544fbej6o2va