Vertical Intra-industry Trade between EU and Accession Countries

Arbeitspapier

The paper analyses vertical intra-industry trade between EU and Accession countries, and concentrates on two country-specific determinants: Differences in personal income distribution and in technology. Both determinants have a strong link to national policies and to cross-border investment flows. In contrast to most other studies, income distribution is not seen as time-invariant variable, but as changing over time. What is new is also that differences in technology are tested in comparison with cost advantages from capital/labour ratios. The study applies panel estimation techniques with GLS. Results show country-pair fixed effects to be of high relevance for explaining vertical intraindustry trade. In addition, bilateral differences in personal income distribution and their changes are positive related to vertical intra-industry trade in this special regional integration framework; hence, distributional effects of policies matter. Also, technology differences turn out to be positively correlated with vertical intra-industry trade. However, the cost variable (here: relative GDP per capita) shows no clear picture, particularly not in combination with the technology variable.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IWH Discussion Papers ; No. 12/2006

Classification and Topics

• Classification: Wirtschaft ; Empirical Studies of Trade ; Economic Integration
• Subject: internationaler Handel ; intra-industrielle Handel ; vertikaler intra-industrieller Handel ; Europäische Union ; Einkommensverteilung ; Technologie ; Intra-industry trade ; transition countries

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gabrisch, Hubert
• Event: Veröffentlichung
• (who): Leibniz-Institut für Wirtschaftsforschung Halle (IWH)
• (where): Halle (Saale)
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/23757
• URN: urn:nbn:de:gbv:3:2-252
• Last update: 10.03.2025, 11:44 AM CET