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Determinants of agro-food trade competition of Central European countries with the European Union

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  • BOJNEC, Stefan
  • FERTO, Imre
Abstract
The two-way trade flows are classified into four competition categories: successful price competition when trade surplus is at lower export than import price, unsuccessful price competition when trade deficit is at higher export than import price, successful quality competition when trade surplus is at higher export than import price, and unsuccessful quality competition when trade deficit is at lower export than import price. Using a panel dataset of determinants of agro-food trade competition between the five Central European Countries (Czech Republic, Hungary, Poland, Slovakia, and Slovenia) and the European Union, we found the effect of trade balance on trade competition to be more significant than the effect of export-import unit values. Natural, and to a lesser extent human factor endowments increase price and quality competition and reduce unsuccessful price and quality competition. R&D expenditures improve quality competition and reduce price competition. Foreign direct investment reduces unsuccessful price competition and increases unsuccessful quality competition. The size of the economy improves price competition and reduces quality competition. Consumer demands associated with higher level of income per capita increase unsuccessful price and quality competition.

Suggested Citation

  • BOJNEC, Stefan & FERTO, Imre, 2009. "Determinants of agro-food trade competition of Central European countries with the European Union," China Economic Review, Elsevier, vol. 20(2), pages 327-337, June.
    • Handle: RePEc:eee:chieco:v:20:y:2009:i:2:p:327-337
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    Cited by:

    1. Ferto, Imre & Fogarasi, Jozsef, 2011. "On Trade Impact of Exchange Rate Volatility and Institutional Quality: The Case of Central European Countries," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114351, European Association of Agricultural Economists.
    2. Aron TOROK & Attila JAMBOR, 2016. "Determinants of the revealed comparative advantages: The case of the European ham trade," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(10), pages 471-482.
    3. Štefan Bojnec & Lukáš Čechura & Jan Fałkowski & Imre Fertő, 2021. "Agri‐ food Exports from Central‐ and Eastern‐European Member States of the European Union are Catching Up," EuroChoices, The Agricultural Economics Society, vol. 20(1), pages 11-19, April.
    4. Alexandra, Rajczi & Péter, Vörös & Krisztina, Dajnoki, 2017. "Human Resource Aspect Of Agricultural Economy – Challenges Of Demographic Change," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 11(3-4), December.
    5. Marcin Pigłowski, 2021. "The Intra-European Union Food Trade with the Relation to the Notifications in the Rapid Alert System for Food and Feed," IJERPH, MDPI, vol. 18(4), pages 1-19, February.
    6. Štefan Bojnec & Imre Fertő, 2012. "Agro-food exports variety from the Central and Eastern European countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(1), pages 1-9.
    7. Jámbor, Attila, 2011. "Az agrárkereskedelem változása Magyarország és az Európai Unió között a csatlakozás után [The post-accession change in agricultural trading between Hungary and the EU]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 775-791.
    8. Jambor, Attila, 2011. "Impacts of EU Accession on Hungarian Primary and Processed Agricultural Trade," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108946, Agricultural Economics Society.

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