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

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Author Info

  • Dusan Drabik
  • Jan Pokrivcak
  • Pavel Ciaian

Abstract

In the paper we 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, approximately 31.4 percent of the increase in agricultural imports from the EU15 and CEEC was the effect of EU accession.

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Bibliographic Info

Paper provided by Economics and Econometrics Research Institute (EERI), Brussels in its series EERI Research Paper Series with number EERI_RP_2007_03.

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Length: 30 pages
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:eei:rpaper:eeri_rp_2007_03

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Keywords: Trade liberalization; trade diversion and creation; EU accession;

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References

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  1. Anne O. Krueger, 1999. "Trade Creation and Trade Diversion Under NAFTA," NBER Working Papers 7429, National Bureau of Economic Research, Inc.
  2. Peter Egger & Michael Pfaffernmayr, 2002. "The Pure Effects of European Integration on Intra-EU Core and Periphery Trade," International Trade, EconWPA 0204001, EconWPA.
  3. Soloaga, Isidro & Winters, L. Alan, 1999. "Regionalism in the Nineties: What Effect on Trade?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2183, C.E.P.R. Discussion Papers.
  4. Ciaian, Pavel & Swinnen, Johan F.M., 2007. "Distortions to Agricultural Incentives in Central and Eastern Europe," Agricultural Distortions Working Paper, World Bank 48385, World Bank.
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Cited by:
  1. 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 Provider-Homepage: http://www.roaae.org;Association of Agricultural Ec, Faculty of Economics and Management, Slovak Agricultural University in Nitra Provider-Homepage: http://www.roaae.org;Association of Agricultural Economists in Slovakia (APES), vol. 16(2).

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