Intra-industry Exchange as a Form of International Trade in Agri-food Products

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Anna Rytko

Abstract
The meaning of intra-industry trade should be examined in the light of the theoretical and empirical research of H. Grubel and P. Lloyd. They distinguished two types of trade: intra-industry trade and inter-industry trade. The relative importance of intra-industry exchange and inter-industry exchange depends on the degree of similarity between countries. If countries are similar with regard both to resources possessed and used technology, their exchange generally will be of intra-industry nature. In the case of intra-industry trade, economies of scale arc linked to differentiation of production in conditions of imperfect competition. The method of measurement of this type of trade is employing an intra-industry trade index (IIT). In the paper, this index was calculated for agri-food products exported from Poland during the period of 1994-1999. The results of the conducted research are as follows: the high level of IIT was obtained for such products as: carrots, sugar confectionery, coffee extracts, non-alcoholic beverages, bear, poultry meat and its preparations, wheat flour; - the products with medium level of IIT were: fresh milk, alcoholic beverages, potatoes, apples, rapeseed oil, hops, pulses, pig meat.

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How to Cite
Rytko, A. (2002). Intra-industry Exchange as a Form of International Trade in Agri-food Products. Zeszyty Naukowe SGGW - Ekonomika I Organizacja Gospodarki Żywnościowej, (47), 67–73. https://doi.org/10.22630/EIOGZ.2002.47.22
References

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