Trade Types in Slovenian Primary and Processed Agricultural Trade

The significance of the processed food products in agricultural and food trade is increasing in Slovenia as well as in the other developed countries. The large share of agricultural and food trade is inter-industry trade. The significance of intra-industry trade (IIT) is increasing with the degree of processing. In particular, IIT is based on products differentiated in quality where low quality vertical IIT prevails. This kind of trade specialization and trade patterns, together with trade geography, imply some similarities in these trade developments with developing countries and countries with less competitive food processing rather than with more advanced European Union countries with the competitive food processing sector.