ANALYSIS OF INTRA-INDUSTRY TRADE IN AGRI-FOOD PRODUCTS BETWEEN BOSNIA AND HERZEGOVINA AND THE EUROPEAN UNION

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Snježana Brkić Radovan Kastratović Mirela Abidović - Salkica

Abstract

Although research of intra-industry trade (IIT) has been intensive in the last several decades, the empirical literature focusing on this phenomenon in the Western Balkans countries remains limited, especially in agricultural sector. Aiming to contribute to the existing literature, the paper analyses patterns and country-specific determinants of IIT in agri-food products between Bosnia and Herzegovina (BiH) and the European Union (EU) during the period of their mutual trade liberalisation (2008-2018). The analysis employs Grubel-Lloyd indices and Greenaway-Hine-Milner methodology for measurement of IIT, and applies an econometric panel data model using a Poisson Pseudo-maximum likelihood approach in order to estimate effects of IIT determinants. The findings suggest that intra-industry agri-food trade of BiH with the EU is of low intensity and mainly of vertical nature, viewed totally and bilaterally. We found significant positive effects of trading countries’ sizes, common border and history on IIT, and negative effects of the geographic distance and differences in agricultural productivity.

Article Details

How to Cite
Brkić, S., Kastratović, R., & Abidović - Salkica, M. (2021). ANALYSIS OF INTRA-INDUSTRY TRADE IN AGRI-FOOD PRODUCTS BETWEEN BOSNIA AND HERZEGOVINA AND THE EUROPEAN UNION. The South East European Journal of Economics and Business, 16(2), 53-67. Retrieved from http://journal.efsa.unsa.ba/index.php/see/article/view/1647
Section
Scientific and Professional papers: Economics and Business
Author Biographies

Snježana Brkić, School of Economics and Business, University of Sarajevo, Sarajevo

Snježana Brkić, PhD (corresponding author)
Associate Professor
School of Economics and Business
University of Sarajevo
E-mail: snjezana.brkic@efsa.unsa.ba
Address: Trg oslobođenja – Alija Izetbegović 1
71 000 Sarajevo
Bosnia and Herzegovina
ORCID: https://orcid.org/0000-0003-1004-9855

Radovan Kastratović, Faculty of Economics, University of Belgrade, Belgrade

Radovan Kastratović, PhD
Teaching Assistant
University of Belgrade Faculty of Economics
Belgrade, Republic of Serbia
E-mail: radovan.kastratovic@ekof.bg.ac.rs
ORCID: https://orcid.org/0000-0002-6138-906X

Mirela Abidović - Salkica, Faculty for Technical Studies, University of Travnik, Travnik

Mirela Abidović Salkica, MSc
Senior Assistant
Faculty for Technical Studies University of Travnik
Travnik, Bosnia and Herzegovina
E-mail: mirelaabidovic@hotmail.com
ORCID: https://orcid.org/0000-0002-5325-5600