INTRA-INDUSTRY TRADE IN HORIZONTALLY AND VERTICALLY DIFFERENTIATED AGRI-FOOD PRODUCTS BETWEEN HUNGARY AND THE EU

The widely held smooth adjustment hypothesis (SAH) proposes that a rising share of intra-industry trade (IIT) will be accompanied by lower factor adjustment costs, particularly in

Results: The results of the study show that per capita income, trade intensity, distance, exchange rate and gross domestic product explain Intra-Industry Trade

(1998), examining the importance of trade in intermediate goods, used a vertical specialization index as a measure of fragmentation.. Based on their approach, vertical specialization

Key Words: Adjustment costs; dynamic panel data, labor market; marginal intra-.. industry trade, smooth adjustment