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The International Competitiveness of Hungarian Agriculture: Past Performance and Future Projections

Author

Listed:
  • Matthew Gorton
  • Sophia Davidova
  • Martin Banse
  • Alistair Bailey

Abstract

The past and future international competitiveness of Hungarian agriculture is assessed by calculating domestic resource cost (DRC) ratios using data for 2000-02 as a base. Future international competitiveness is estimated for 2007 and 2013 under three scenarios: baseline (no accession), accession with historical rates of productivity growth and accession with dynamic improvements in productivity. Predicted price changes were generated by a computable general equilibrium (CGE) model, which was applied to quantify the implications of the 2004 EU accession. The analysis indicates that accession will have a negative impact on the international competitiveness of Hungarian agriculture by increasing land and labour prices. To maintain competitiveness in the arable sector, Hungary will need to achieve dynamic improvements in productivity to offset the effect of higher factor costs. The dairy sector, under all scenarios, is likely to remain internationally uncompetitive.

Suggested Citation

  • Matthew Gorton & Sophia Davidova & Martin Banse & Alistair Bailey, 2006. "The International Competitiveness of Hungarian Agriculture: Past Performance and Future Projections," Post-Communist Economies, Taylor & Francis Journals, vol. 18(1), pages 69-84.
    • Handle: RePEc:taf:pocoec:v:18:y:2006:i:1:p:69-84
    DOI: 10.1080/14631370500505289
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    References listed on IDEAS

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    1. Kannapiran, Chinna A. & Fleming, Euan M., 1999. "Competitiveness And Comparative Advantage Of Tree Crop Smallholdings In Papua New Guinea," Working Papers 12911, University of New England, School of Economics.
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    Cited by:

    1. Jámbor, Attila & Kovács, Sándor & Somai, Miklós, 2016. "Tíz év az Európai Unióban - az új tagországok agrárteljesítményei [A decade in the EU: the agricultural performances of the new member-states]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 260-284.
    2. Lobanov, Mikhail (Лобанов, Михаил) & Zvezdvanovic-Lobanova, Jelena (Звезданович-Лобанова, Елена), 2017. "Specifics of Agricultural Policy in the Countries of Central-Eastern and South-Eastern Europe in 1990–2010s [Особенности Аграрной Политики В Странах Центрально- И Юго-Восточной Европы В 1990-2010-Х," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 3, pages 150-173, June.
    3. Irina Pilvere & Aleksejs Nipers & Agnese Krievina & Ilze Upite & Daniels Kotovs, 2022. "LASAM Model: An Important Tool in the Decision Support System for Policymakers and Farmers," Agriculture, MDPI, vol. 12(5), pages 1-26, May.
    4. Jozsef TOTH & Imre FERTO, 2017. "Innovation in the Hungarian food economy," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(1), pages 43-51.
    5. Csaba Csaki & Attila Jambor, 2019. "Convergence or divergence - Transition in agriculture of Central and Eastern Europe and Commonwealth of Independent States revisited," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(4), pages 160-174.
    6. Jambor, Attila & Sirone Varadi, Julia, 2014. "10 years of EU membership: winners and losers in the agri-food sector of the new member states," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182736, European Association of Agricultural Economists.
    7. Chuanmin SHUAI & Xi WANG, 2011. "Comparative advantages and complementarity of Sino-US agricultural trade: An empirical analysis," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 57(3), pages 118-131.
    8. Xiao Lyu & Yanan Wang & Yuntai Zhao & Shandong Niu, 2022. "Spatio‐temporal pattern and mechanism of coordinated development of “population–land–industry–money” in rural areas of three provinces in Northeast China," Growth and Change, Wiley Blackwell, vol. 53(3), pages 1333-1361, September.
    9. Aneta Jarosz-Angowska & Marek Angowski & Magdalena Kakol & Anna Nowak & Monika Rozanska-Boczula, 2020. "Agricultural Competitive Potential and Competitive Position in the International Trade of Agricultural and Food Products in the European Union," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 779-803.

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