Determinant factors of intra-industry trade: the case of Poland and its European Union trading partners
DOI:
https://doi.org/10.12775/EQUIL.2016.011Keywords:
intra-industry trade, country-specific determinants, Poland, European UnionAbstract
This study has investigated the country-specific determinants of intra-industry exchange between Poland and its European Union trading partners during the time period 2002?2011. The analysis of the factors determining the Polish bilateral intra-industry trade with European Union countries applied an econometric model for panel data. As follows from the research, the intensity of intra-industry trade is dependent on numerous factors. The factors that exert a positive impact on the development of intra-trade exchange include the participation of processed products in bilateral trade between Poland and UE states, the intensity of trade with specific countries as well as the size of a partner country measured by its GDP per capita. Increases in the intra-trade turnover are also facilitated by EU membership and by the fact that Poland?s trade partners use a similar language, belonging to the group of the Slavic languages. The intensity of intra-trade exchange is weakened by the degree of the imbalance of trade turnover between trading partners, geographical distance that separates trading partners and significant differences in the size of trading partners? GDPs.
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References
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Cieślik, A. (2000). Nowa teoria handlu zagranicznego w świetle badań empirycznych, Warszawa: Wydawnictwo Naukowe PWN.
Ekanayake, E. M. (2001). Determinants of Intra-Industry Trade: The Case of Mexico. International Trade Journal, 15(1). DOI: http://dx.doi.org/10.1080 /088539001300005468.
Fitzová, H. & Žídek, L. (2015). Impact of Trade on Economic Growth in the Czech and Slovak Republics. Economics and Sociology, 8(2). DOI: 10.14254/2071-789X.2015/8-2/4.
Foster, N. & Stehrer, R. (2011). Preferential Trade Agreements and the Structure of International Trade. Review of World Economics, 147(3). DOI: http://dx.doi.org/10.1007/s10290-011-0093-y.
Grubel, H. G. & Lloyd, P. J. (1975). Intra-Industry Trade: The Theory and Measurement of International Trade in Differentiated Products. London: Macmillan.
Kim, T. & Oh, K.-Y. (2001). Country Size, Income Level and Intra-Industry Trade. Applied Economics, 33(3). DOI: http://dx.doi.org/10.1080/00036840122211.
Leit?o, N. C. (2011). Intra-industry Trade in the Agriculture Sector: The Experience of United States. African Journal of Agricultural Research, 6(1). DOI: http://dx.doi.org/10.5897/AJAR10.822.
Leit?o, N. C. & Shahbaz, M. (2012). Liberalization and United States? Intra-Industry Trade. International Journal of Economics and Financial Issues, 2(4).
Loertscher, R. & Wolter, F. (1980). Determinants of Intra-Industry Trade: Among Countries and Across Industries. Weltwirtschaftliches Archiv, 116(2).
Markusen, J. R. & Vanables, A. J. (1996). The Theory of Endowment, Intra-Industry and Multinational Trade. Retrieved from http://www.nber.org/papers/ w5529.pdf?new_window=1 (1.04.2015).
Muszyńska, J. (2006). Modelowanie danych panelowych. Zeszyty Naukowe Państwowej Wyższej Szkoły Zawodowej we Włocławku, 1.
Salamaga, M. (2012). Ocena wpływu bezpośrednich inwestycji zagranicznych na handel wewnątrzgałęziowy w wybranych krajach Europy Środkowo-Wschodniej. Zeszyty Naukowe Uniwersytetu Ekonomicznego w Krakowie, 878.
Sharma, K. (2004). Horizontal and Vertical Intra-industry Trade in Australian manufacturing: Does Trade Liberalization Have any Impact? Applied Economics, 36. DOI: http://dx.doi.org/10.1080/0003684042000218534.
Stone, J. A. & Lee, H.-H. (1995). Determinants of Intra-Industry Trade: A Longitudinal, Cross-Country Analysis. Weltwirtschaftliches Archiv, 131(1). DOI: http://dx.doi.org/10.1007/BF02709072.
The World Bank (2014). World Development Indicators. Retrieved from http://data.worldbank.org/data-catalog/world-development-indicators. (December 2014).
Thorpe, M. & Zhang, Z. (2005). Study of the Measurement and Determinants of Intra-Industry Trade in East Asia. Asian Economic Journal, 19(2). DOI: http://dx.doi.org/10.1111/j.1467-8381.2005.00211.x.
United Nations Conference on Trade and Development (2013). World Investment Report. Retrieved from http://unctad.org/en/pages/DIAE/World%20Investm ent%20Report/WIR-Series.aspx. (2.12.2014).
United Nations (2014). UN Comtrade Database. Retrieved from http://comtrade.un.org/data/. (2.12.2014).
Wakasugi, R. (2007). Vertical Intra-Industry Trade and Economic Integration in East Asia. Asian Economic Papers, 6(1). DOI: http://dx.doi.org/10.1162 /asep.2007.6.1.26.
Xing, Y. (2007). Foreign direct investment and China?s bilateral intra-industry trade with Japan and the US. Journal of Asian Economics, 18(4). DOI: http://dx.doi.org/10.2139/ssrn.1002290.
Zhang, Y. & Clark, D. P. (2009). Pattern and determinants of United States? intra-industry trade. International Trade Journal, 23(3). DOI: http://dx.doi.org/10 .1080/08853900903012310.
Zhang, Z. & Li, C. (2006). Country-Specific Factors and the Pattern of Intra-Industry Trade in China?s Manufacturing. Journal of International Development, 18. DOI: http://dx.doi.org/DOI: 10.1002/jid.1288.
Zielińska-Głębocka, A. (1991). Teorie międzynarodowej specjalizacji wewnątrzgałęziowej i handlu towarami przemysłowymi między krajami uprzemysłowionymi. Gdańsk: Wydawnictwo Uniwersytetu Gdańskiego.
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Published
2016-06-30
How to Cite
Łapińska, J. (2016). Determinant factors of intra-industry trade: the case of Poland and its European Union trading partners. Equilibrium. Quarterly Journal of Economics and Economic Policy, 11(2), 251–264. https://doi.org/10.12775/EQUIL.2016.011
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International economics
