Horizontal and Vertical Intra-Industry Trade between New and Old Member Countries - Implications for Convergence

Jana Hromadová

Master's thesis

Horizontalni a vertikalni obchod v ramci odvetvi mezi novymi a stavajicimi clenskymi zememi EU - implikace pro konvergenci

Abstract:

Hlavnim cilem prace je zhodnotit pomoci analyzy indexu obchodu v ramci odvetvi vyvoj bilateralnich obchodnich vztahu zpracovatelskeho prumyslu mezi Madarskem, Ceskou republikou, Slovenskem, Polskem, Slovinskem, Estonskem, Lotysskem a Litvou a stavajicimi clenskymi staty EU (EU 15/EU 25) v letech 1995, 1999, 2004 a 2007. Data jsou cerpana z databaze Eurostatu Easy Comext a klasifikovana dle SITC (Rev.3). K vypoctu indexu obchodu v ramci odvetvi je uzita metoda Grubel-Lloyd indexu, kdy jsou data zpracovana na urovni 3-mistne a 1-miste klasifikace prumyslovych odvetvi (SITC 5, 6, 7, 8) a nasledne agregovana na urovne zpracovatelskeho prumyslu jako celku (SITC 5 - 8). K rozcleneni obchodu v ramci odvetvi na horizontalni a vertikalni slozky je uzita metoda Greenaway, Hine and Milner, pricemz vertikalni slozka je dale clenena na vertikalni obchod v ramci odvetvi o nizke a vysoke kvalite, a to na zaklade unit value indexu. Vysledek analyzy dokazuje jednak rostouci podil obchodu v ramci odvetvi na celkovem obchodu mezi danymi zememi behem celeho sledovaneho obchobi, a to ve vsech zemich a ve vsech sektorech, SITC 6, 7 a 8 inklinujici k ciste specializaci na obchod v ramci odvetvi; jednak dominantni specializaci na vertikalni obchod v ramci odvetvi nizsi kvality, coz doklada prozatim pouze pozvolny kovergencni rust novych clenskych zemi vuci stavajicim clenum Evropske Unie.

Abstract:

The main aim of this dissertation is to provide evidence on the development of bilateral trade relations related to manufacturing industry between Hungary, the Czech Republic, Slovakia, Poland, Slovenia, Estonia, Lithuania and Latvia and the old Member States of the EU (EU 15/EU 25) through focus on the intra-industry trade phenomenon during the period delimited by years 1995, 1999, 2004 and 2007. Based on data from Eurostat Easy Comext database classified according to the Standard International Trade Classification (Rev.3), Grubel-Lloyd indices are computed at the level of 3-digit and 1-digit manufacturing industries (SITC 5, 6, 7, 8) and thereafter aggregate to the level of manufacturing sector as a whole (SITC 5 - 8). Consequently, Greenaway, Hine and Milner methodology is used for disentangling intra-industry trade into its horizontal and vertical components (the latter being further separated into low quality vertical intra-industry trade and high quality vertical intra-industry trade) on the basis of unit value indices. The results show that the share of intra-industry trade in total trade between the countries in focus is increasing during the complete period in all countries and all sectors with SITC 6, 7 and 8 clearly inclining to intra-industry specialization. Altogether, the predominant specialization in high quality vertical IIT is presented, implying so far only slowly advancing convergence steps of the new Member States towards the path of the initial Members of the EU.

Keywords

meziodvetvovy obchod, obchod v ramci odvetvi, Evropska integrace, ekonomicka konvergence

Keywords

economic convergence, inter-industry trade, intra-industry trade, European integration

Language used: English

Date on which the thesis was submitted / produced: 21. 3. 2011

Thesis defence

• Date of defence: 9. 1. 2012
• Supervisor: Anna Klosová
• Reader: Jean Jack Nowak

Vysoká škola ekonomická v Praze

Master programme:
Economics of International Trade and European Integration