Handel wewnątrzgałęziowy produktami rolno-spożywczymi między UE a krajami MERCOSUR

Jakub Kraciuk

Authors

Jakub Kraciuk ✉️ Szkoła Główna Gospodarstwa Wiejskiego w Warszawie
jakub_kraciuk@sggw.edu.pl https://orcid.org/0000-0001-8046-147X

Keywords:

agri-food products, EU and MERCOSUR countries, intra-industry trade

Abstract

Aim: The aim of the article was to show the inter and intra-industry trade in agri-food products between the EU and MERCOSUR countries.

Methodology: The Grubel-Lloyd index was used to calculate the intensity of intra-industry trade, while to distinguish intra-industry trade into vertical and horizontal trade, unit values were used on the assumption that relative prices reflect relative characteristics, where horizontally differentiated products are homogeneous and of the same quality, while vertically differentiated products have different prices reflecting different quality. A distinction was also made between high intra-industry vertical trade characterised by higher quality exported products and low intra-industry vertical trade in higher quality imported products. This approach made it possible to identify which agri-food products exported by the EU to MERCOSUR countries have a higher quality than those imported from these countries, and for which product groups MERCOSUR countries have a quality advantage.

Results: The results of the study indicated that international trade in agri-food products between the European Union and the rest of the world demonstrates a high intensity of intra-industry trade. The situation is different for trade between the European Union and MERCOSUR countries, as it is of an inter-industry trade nature. In terms of the most important product groups, there is mostly vertical intra-industry trade and, importantly, the products exported by the European Union are predominantly of higher quality than those exported by MERCOSUR, as their trade is of a high vertical intra-industry trade nature.

Implications and recommendations: The prevalence of high vertical intra-industry trade in the reciprocal exchange of certain groups of agri-food products between the EU and the MESCOSUR countries is an important indication of the quality of these products, and thus indicates the possibility of obtaining higher prices for them. This is important at a time of ongoing negotiations and before the two groupings decide to ratify the FTA concluded in 2019.

Originality/value: The article contains original research results. Although its methodology has been used by other authors, it has not been used to study the reciprocal exchange of agri-food products between the EU and MERCOSUR.

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