Determinants of the horizontal and vertical intra-industry trade between Norway and the European Union

• Autor(a) principal: Trupkiewicz, Michał
• Data de Publicação: 2015
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/11203
• topic: Intra-industry trade; Product differentiation; Panel data; Norway; Comércio intra-ramo; Diferenciação do produto; Dados de painel; Noruega

This study investigates determinants of the bilateral intra-industry trade (IIT) types between Norway and the European Union trading partners over the period 2000-2013. In the study there is applied comprehensive approach by analysing determinants of the IIT types in terms of country- and industry-characteristics. Intra-industry trade is decomposed into horizontal (HIIT) and vertical (VIIT) parts based on products’ unit values per kilogram for two different values of dispersion factors. Trade pattern between Norway and the EU in analysed period suggests that only around 16% of trade occurs under IIT with greater domination of VIIT. In our empirical research we use fit panel-data models by employing feasible generalized least square method. Apart from traditional country-characteristics like difference in relative factor endowments, economic size and geographical proximity, there is also examined the impact of integration schemes, FDI inflows and endowments in specific natural resources. Furthermore, the study analyses the effect of increase in net migration flows on IIT and shows that it significantly promotes all types of IIT. In cross-industry analysis, the study argues that horizontal and vertical product differentiation are needed in considering determinants of IIT and confirms that intensification of the scale economies, market structure, market concentration and multinational character of the market have significant and positive impact on both HIIT and VIIT.