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Impacts of EU Accession on Hungarian Primary and Processed Agricultural Trade

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  • Jambor, Attila

Abstract

In 2004, Hungary joined the European Union (EU) along with nine other Central and Eastern European Countries, causing several changes in the field of agriculture. One of the major changes was the transformation of national agri-food trade. The aim of the paper is to analyse the effects of EU accession on the Hungarian primary and processed agri-food trade, especially considering revealed comparative advantages, by using recent data. Results suggest that EU accession raised the intensity of trade contacts but had a negative impact on trade balance. Nominal values of both exports and imports increased after 2004, however, Hungarian agriculture is increasingly based on raw material export and processed food import. It also turned out that revealed comparative advantages of Hungarian primary agri-food products in EU15 remained almost constant after accession, while comparative advantages of processed agri-food products has been gradually increasing by time and even reached the satisfactory level in some cases. From the policy perspective, it is apparent that there is a need for deeper structural reforms of the Hungarian agricultural and food sector is the future.

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Bibliographic Info

Paper provided by Agricultural Economics Society in its series 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK with number 108946.

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Date of creation: Apr 2011
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Handle: RePEc:ags:aesc11:108946

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Keywords: EU accession; agri-food trade; primary and processed products; Agribusiness; Q17; Q18;

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  1. Thomas Vollrath, 1991. "A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(2), pages 265-280, June.
  2. Jeroen Hinloopen & Charles Marrewijk, 2001. "On the empirical distribution of the Balassa index," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(1), pages 1-35, March.
  3. Jeroen Hinloopen & Charles van Marrewijk, 2004. "Empirical Relevance of the Hillman Condition and Comparative Advantage," Tinbergen Institute Discussion Papers 04-019/2, Tinbergen Institute.
  4. Jambor, Attila, 2010. "Intra-industry trade of Hungarian agricultural products and the EU-accession," Studies in Agricultural Economics, Research Institute for Agricultural Economics, issue 111, March.
  5. Arye Hillman, 1980. "Observations on the relation between “revealed comparative advantage” and comparative advantage as indicated by pre-trade relative prices," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 116(2), pages 315-321, June.
  6. BOJNEC, Stefan & FERTO, Imre, 2009. "Determinants of agro-food trade competition of Central European countries with the European Union," China Economic Review, Elsevier, vol. 20(2), pages 327-337, June.
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