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A Cross-Section Analysis of Intra-Industry Trade in the U.S. Processed Food and Beverage Sectors

Published online by Cambridge University Press:  15 September 2016

Darcy A. Hartman ,
Dennis R. Henderson  and
Ian M. Sheldon
Darcy A. Hartman
Affiliation:
Department of Agricultural Economics and Rural Sociology, The Ohio State University
Dennis R. Henderson
Affiliation:
Department of Agricultural Economics and Rural Sociology, The Ohio State University
Ian M. Sheldon
Affiliation:
Department of Agricultural Economics and Rural Sociology, The Ohio State University
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Abstract

This paper analyzes the determinants of variation across industries in levels of intra-industry trade (IIT) for a sample of thirty-six U.S. processed food and beverage industries in 1987, previous studies of intra-industry trade having focussed on industry characteristics in the manufacturing sectors. The determinants predicted by IIT theory are measures of product differentiation, economies of scale, and imperfect competition; the results of this analysis indicate that IIT variation across the food and beverage industries is positively related to product differentiation, economies of scope, and similarity of tariff barriers among trade partners, but negatively related to industry concentration.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 22 , Issue 2 , October 1993 , pp. 189 - 198
Copyright
Copyright © 1993 Northeastern Agricultural and Resource Economics Association 

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