Intra-industry food trade in European countries: An analysis of EU15 trade data
2009
Kanada, N.(Tokyo Univ. of Agriculture (Japan))
In this paper, the structure and the determining factor of EU15 food intra-industry trade are analyzed with trade value data based on BEC (Broad Economic Category) classification. The average GL (Grubel-Lloyd) index of bilateral food trade is substantially higher than that in East Asian food trade. The GL index is higher for processed food for home use than for raw food for industrial use. A regression analysis made clear that geographical distance, as a proxy of the difference in preferences in the two countries, affects the GL index for all food categories. Language, as a proxy of cultural similarity, also explains the GL index. Not many of the preference variables based on per capita GDP are significant. The total market scale of two countries has a positive effect on the GL index, though the effect of the difference in the market scale is not clear. The difference in land endowments does not clearly affect the GL index.
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