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Trade Creation and Diversion in the Enlarged EU Market: Evidence for Agricultural Trade in Slovakia

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Author Info

  • Dusan Drabik

    ()
    (Slovak Agricultural University in Nitra, Slovakia)

  • Jan Pokrivcak

    ()
    (Slovak Agricultural University in Nitra, Slovakia)

  • Pavel Ciaian

    ()
    (Katholieke Universiteit Leuven, Belgium, and Slovak Agricultural University in Nitra)

Abstract

In the paper the authors analyze the changes in agricultural trade patterns in Slovakia influenced by the gradual trade liberalization that occurred prior to European Union enlargement in 2004. The results show a significant trade-diversion effect of the enlargement on Slovak agricultural trade. A one-percentage-point reduction in the agricultural tariff rate of Slovakia increases agricultural imports from EU15 and Central and East European countries (CEEC) by around 3 percent. Given that the average reduction in tariff rates was 10.4 percent, the authors can conclude that approximately 31.4 percent of the increase in agricultural imports from the EU15 and CEEC was due to elimination of tariffs as Slovakia (and the other CEECs) joined the EU.

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Bibliographic Info

Article provided by Charles University Prague, Faculty of Social Sciences in its journal Finance a uver - Czech Journal of Economics and Finance.

Volume (Year): 57 (2007)
Issue (Month): 9-10 (October)
Pages: 433-447

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Handle: RePEc:fau:fauart:v:57:y:2007:i:9-10:p:433-447

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Related research

Keywords: agricultural trade; EU enlargement; Slovakia; trade liberalization;

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References

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  1. Peter Egger & Michael Pfaffernmayr, 2002. "The Pure Effects of European Integration on Intra-EU Core and Periphery Trade," International Trade 0204001, EconWPA.
  2. Soloaga, Isidro & Alan Wintersb, L., 2001. "Regionalism in the nineties: what effect on trade?," The North American Journal of Economics and Finance, Elsevier, vol. 12(1), pages 1-29, March.
  3. Anne O. Krueger, 1999. "Trade Creation and Trade Diversion Under NAFTA," NBER Working Papers 7429, National Bureau of Economic Research, Inc.
  4. Ciaian, Pavel & Swinnen, Johan F.M., 2007. "Distortions to Agricultural Incentives in Central and Eastern Europe," Agricultural Distortions Working Paper 48385, World Bank.
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Cited by:
  1. Rajcaniova, Miroslava & Pokrivcak, Jan, 2013. "Asymmetry in Price Transmission Mechanism: The Case of Slovak Potato Market," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra Provider-Homepage: http://www.roaae.org;Association of Agricultural Economists in Slovakia (APES), vol. 16(2).

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