Intra-Industry Trade in Agricultural Products: The Case of China

• Author(s): Jing, Wang ; Leitão, Nuno Carlos ; Faustino, Horácio C.
• Date: 2010
• Persistent ID: http://hdl.handle.net/10400.5/2514
• Origin: Repositório da UTL
• Subject(s): agricultural products; intra-industry trade; China
• Document Type: Other
• Language: English

Description

This paper studies the extent and determinants of intra-industry trade (IIT) in agricultural products of China for the period 1997-2006. The IIT index shows that the level of IIT in agricultural products between China and its thirteen main trading partners is not high. Using a panel data analysis, the empirical results of determinants of IIT indicate that differences in per-capita income and geographical distance have a negative effect on Chinese IIT in agricultural products. Free trade agreements between China and some trading partners weaken the negative effect of per-capita income differences on IIT. The results also suggest that cultural similarity between China and some countries has a positive influence on this type of trade.