Advances in Food Science and Technology

Advances in Food Science and Technology ISSN: 6732-4215 Vol. 7 (4), pp. 001-005, April, 2019. © International Scholars Journals

Full Length Research Paper

Intra-industry trade in the agriculture sector: The experience of United States

Nuno Carlos Leitão

Polytechnic Institute of Santarém, ESGTS, Portugal. E-mail: nunocarlosleitao@gmail.com. Tel: + 351-243 303 200.

Accepted 11 October, 2018

Abstract

This study analyses the determinants of United State’s intra-industry trade (IIT) applied to the agriculture sector. The results indicate that IIT in this sector is a negative role of the difference in GDP per capita between U S. and its trade partners. This is according to the literature; that is, countries with similar demands will trade similar products. Statistically strong evidence is also found that this trade is influenced by the economic dimension between trading partners. The foreign direct investment inflows have a positive influence on U.S. bilateral IIT.

Key words: Intra-industry trade, United States, agriculture sector, panel data.