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Agricultural And Food Trade In Central And Eastern Europe: The Case Of Slovenian Intra-Industry Trade

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Author Info
Bojnec, Stefan
Hartmann, Monika
Abstract

One of the striking features in Central and Eastern European (CEE) countries is the deterioration of their agricultural and food trade balance during transition to a market economy as imports increased faster than exports or exports even declined. This paper investigates the Slovenian agricultural and food trade in more detail focusing on changes in the geographical distribution of trade and the nature of trade specialization on the basis of the Grubel-Lloyd Intra-Industry Trade index and Marginal Intra-Industry Trade Indices. The results indicate that Slovenian agricultural and food trade largely remains of the inter-industry type with specialisation of exports towards the former Yugoslav markets and imports from the European Union. The proportion of intra-industry trade was especially low for bulk commodities with little or no processing. A major explanations for these findings is that despite the "free" trade agreements Slovenia signed with the EU and countries of Central and Eastern Europe the level of protection in the agricultural and food sector has remained rather high. Due to EU membership Slovenia faces now direct competition in a market of 25 countries. This intensifies the restructuring process in the Slovenian agricultural and food sector. Due to the present low level of IIT this likely induces rather high adjustment costs since restructuring and reallocation of factors will have to occur between and not within industries. ZUSAMMENFASSUNG DER HANDEL MIT AGRAR- UND ERNÄHRUNGSGÜTERN DER MITTEL- UND OSTEUROPÄISCHEN LÄNDER – SLOVENIENS INTRA-INDUSTRIELLER HANDEL Eine der bemerkenswertesten Entwicklungen im Transformationsprozess der mittel- und osteuropäischen Länder ist die Verschlechterung ihrer Agrarhandelsbilanz als Folge rasanter steigender Importe als Exporte oder aufgrund sinkender Exporte bei stagnierenden oder steigenden Importen. Gegenstand der vorliegenden Studie ist eine detaillierte Analyse von Veränderungen in der geographischen Verteilung des Handels als auch in der Art der Handelsspezialisierung in Hinblick auf den slowenischen Agrar- und Ernährungshandel. Die Analyse der Art der Handelsspezialisierung erfolgt auf Basis des Grubel-Lloyd Intra-Industriellen Handelsindex sowie Marginaler Intra-Industrieller Handelsindizes. Die Ergebnisse zeigen, dass Sloweniens Handel mit Agrar- und Ernährungsgütern nach wie vor primär inter-industrieller Natur ist. Dabei erweist sich die EU als wichtigstes Herkunftsland für die Importe Sloweniens, wogegen die Exporte des Landes vorrangig auf den Märkten des früheren Jugoslawiens abgesetzt werden. Intra-industrielle Handelsströme sind vor allem unbedeutend für landwirtschaftliche Produkte mit geringer oder keiner Verarbeitung. Eine wesentliche Erklärung für diese Resultate ist, dass trotz des Abschlusses verschiedener "Freihandelsabkommen" mit der EU und Ländern Mittel- und Osteuropas das Protektionsniveau für Agrar- und Ernährungsgüter nach wie vor sehr hoch ist. Als Mitglied der Europäischen Union sieht sich Slowenien nun unmittelbar dem Wettbewerb in einem Markt von 25 Ländern ausgesetzt. Dies wird den Restrukturierungsprozess im slowenischen Agrar- und Ernährungssektor verstärken. Auf Grund der geringen Bedeutung intra-industrieller Handelsströme wird dies zur Restrukturierung und zur Reallokation von Faktoren zwischen und nicht innerhalb von Branchen führen und damit relativ hohe Anpassungskosten induzieren.

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Paper provided by Institute of Agricultural Development in Central and Eastern Europe (IAMO) in its series IAMO Discussion Papers with number 14940.

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Date of creation: 2004
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Handle: RePEc:ags:iamodp:14940

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Related research
Keywords: Intra-industry trade; integration; agro-food sector; Industrial Organization; F14; F15; P52; Q17;

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References listed on IDEAS
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  1. Fidrmuc, Jan & Fidrmuc, Jarko, 2000. "Disintegration and Trade," CEPR Discussion Papers 2641, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Helpman, E., 1998. "The Structure of Foreign Trade," Papers 18-98, Tel Aviv.
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  3. Brenton, Paul & Gros, Daniel, 1997. "Trade Reorientation and Recovery in Transition Economies," Oxford Review of Economic Policy, Oxford University Press, vol. 13(2), pages 65-76, Summer.
  4. Maurel, Mathilde & Cheikbossian, Guillaume, 1998. "The New Geography of Eastern European Trade," Kyklos, Blackwell Publishing, vol. 51(1), pages 45-71.
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  5. Djankov, Simeon & Freund, Caroline, 2002. "Trade Flows in the Former Soviet Union, 1987 to 1996," Journal of Comparative Economics, Elsevier, vol. 30(1), pages 76-90, March. [Downloadable!] (restricted)
  6. Joseph Pelzman, 1978. "Soviet-COMECON trade: The question of intra-industry specialization," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 114(2), pages 297-304, June. [Downloadable!] (restricted)
  7. Pelzman, Joseph, 1977. "Trade Creation and Trade Diversion in the Council of Mutual Economic Assistance: 1954-70," American Economic Review, American Economic Association, vol. 67(4), pages 713-22, September. [Downloadable!] (restricted)
  8. Qasmi, Bashir A. & Fausti, Scott W., 1999. "Nafta Intra Industry Trade In Agricultural Food Products," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35689, Western Agricultural Economics Association. [Downloadable!]
  9. Barry Eichengreen & Douglas A. Irwin, 1996. "The Role of History in Bilateral Trade Flows," NBER Working Papers 5565, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  1. Bojnec, Stefan & Majkovic, Darja & Turk, Jernej, 2005. "Trade Types in Slovenian Primary and Processed Agricultural Trade," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24477, European Association of Agricultural Economists. [Downloadable!]
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