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

Author

Listed:
  • 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.

Suggested Citation

  • Dusan Drabik & Jan Pokrivcak & Pavel Ciaian, 2007. "Trade Creation and Diversion in the Enlarged EU Market: Evidence for Agricultural Trade in Slovakia," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 57(9-10), pages 433-447, October.
    • Handle: RePEc:fau:fauart:v:57:y:2007:i:9-10:p:433-447
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    References listed on IDEAS

    as
    1. Chevassus-Lozza, Emmanuelle & Majkovic, Darja & Persillet, Vanessa & Unguru, Manuela, 2005. "Technical Barriers to Trade in the European Union : Importance for the New EU Members. An Assessment for Agricultural and Food Products," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24621, European Association of Agricultural Economists.
    2. Ciaian, Pavel & Swinnen, Johan F.M., 2007. "Distortions to Agricultural Incentives in Central and Eastern Europe," Agricultural Distortions Working Paper Series 48385, World Bank.
    3. Kimberly A. Clausing, 2001. "Trade creation and trade diversion in the Canada - United States Free Trade Agreement," Canadian Journal of Economics, Canadian Economics Association, vol. 34(3), pages 677-696, August.
    4. Peter H. Egger & Michael Pfaffermayr, 2013. "The Pure Effects of European Integration on Intra-EU Core and Periphery Trade," The World Economy, Wiley Blackwell, vol. 36(6), pages 701-712, June.
    5. 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.
    6. Anne O. Krueger, 1999. "Trade Creation and Trade Diversion Under NAFTA," NBER Working Papers 7429, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Nogues, Julio J., 2017. "Mercosur- EU Trade negotiations: ending trade diversion, strengthening trade institutions," MPRA Paper 92287, University Library of Munich, Germany, revised 2017.
    2. M. Bruna Zolin & Utai Uprasen, 2018. "Trade creation and diversion: effects of EU enlargement on agricultural and food products and selected Asian countries," Asia Europe Journal, Springer, vol. 16(4), pages 351-373, December.
    3. 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, vol. 16(2), pages 1-8, September.
    4. J., Julio, 2019. "Brexit trade impacts' and Mercosur's negotiations with Europe," MPRA Paper 94885, University Library of Munich, Germany.

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    More about this item

    Keywords

    agricultural trade; EU enlargement; Slovakia; trade liberalization;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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