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Czech Agrarian Trade Comparative Advantages Distribution in Relation to Developed and Developing Countries

Author

Listed:
  • Luboš Smutka

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Czech Republic)

  • Mansoor Maitah

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Czech Republic)

  • Miroslav Svatoš

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Czech Republic)

Abstract

This article deals with the issues of the current state of commodity structure and distribution of comparative advantages of the Czech agrarian trade in comparison to developed, developing and also in comparison with Commonwealth of Independent States and in relation to other European countries (i.e. non-EU and CIS countries). The goal of this paper is to identify how the comparative advantages of Czech Agrarian exports are distributed. In addition to this, the article also attempts to identify the main differences in the characteristics of agrarian trade between developed countries on one hand and developing countries on the other hand. The results suggest that the agrarian trade performs very differently in relation to individual groups of countries. The Czech agrarian trade has been progressively developing, specifically in relation to developer countries of the world. In this regard, it is necessary to mention the constantly improving characteristics of the Czech agrarian trade in relation to EU28 countries (however, the comparative advantages are based on low prices and high volumes of exported goods. In relation to developing countries, Czech trade is more or less stagnate (however, the trade is based on items with a higher level of processing and in comparison with developed countries is also based on items with significantly higher unit prices). A rather specific development was also recorded in relation to CIS countries and "other European countries". The Czech Republic has a highly competitive commodity structure in relation to these countries, which is primarily based on the export of goods with higher value added and relatively high per kilogram prices.

Suggested Citation

  • Luboš Smutka & Mansoor Maitah & Miroslav Svatoš, 2018. "Czech Agrarian Trade Comparative Advantages Distribution in Relation to Developed and Developing Countries," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 66(4), pages 1001-1015.
    • Handle: RePEc:mup:actaun:actaun_2018066041001
    DOI: 10.11118/actaun201866041001
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    References listed on IDEAS

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    1. Zaghini, Andrea, 2003. "Trade advantages and specialisation dynamics in acceding countries," Working Paper Series 249, European Central Bank.
    2. Svatoš, M. & Maitah, Mansoor & Belova, Anna, 2013. "World Sugar Market – Basic Development Trends and Tendencies," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 5(2), pages 1-16, June.
    3. D'Artis Kancs & Pavel Ciaian, 2010. "Factor content of bilateral trade: the role of firm heterogeneity and transaction costs," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 305-317, May.
    4. Burianova, Jaroslava & Belova, Anna, 2012. "The Competitiveness of Agricultural Foreign Trade Commodities of the CR Assessed by Way of the Lafay Index," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 4(4 Special), pages 1-10, December.
    5. Tri WIDODO, 2009. "Comparative Advantage: Theory, Empirical Measures And Case Studies," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 4, pages 57-82, November.
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