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Dairy sector trade dynamics: Some insights on the evolution of trade linkages within the EU

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  • Imre Fertő
  • Zoltán Bakucs
  • Jan Fałkowski

Abstract

While the positive effect of economic integration on trade is commonly accepted, we still lack a proper understanding of the complex patterns behind this phenomenon. In particular, it is important to better understand how the structure of trade linkages evolves. To advance our knowledge about this matter, we test two specific predictions that originate from the recent literature on network effects in trade relations: (1) that the size of an initial trade network is positively correlated with building new trade linkages; (2) that the evolution of a trade network in a given country depends on the trade network of its trading partners. Using data related to intra‐EU trade in dairy products between 2001 and 2015, we find support for both these predictions.

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  • Imre Fertő & Zoltán Bakucs & Jan Fałkowski, 2021. "Dairy sector trade dynamics: Some insights on the evolution of trade linkages within the EU," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 698-711, September.
    • Handle: RePEc:bla:jageco:v:72:y:2021:i:3:p:698-711
    DOI: 10.1111/1477-9552.12429
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    1. Sapa, Agnieszka & Kryszak, Łukasz, 2021. "Processed Food Trade Of European Union Countries – The Gravity Approach," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2021(2).

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