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Agricultural and food trade in Central and Eastern Europe: the case of Slovenian intra-industry trade

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  • Bojnec, Štefan
  • Hartmann, Monika
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    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 im-ports 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 reallo-cation of factors will have to occur between and not within industries. -- G E R M A N V E R S I O N: Eine der bemerkenswertesten Entwicklungen im Transformationsprozess der mittel- und ost-europäischen Länder ist die Verschlechterung ihrer Agrarhandelsbilanz als Folge rasanter steigender Importe als Exporte oder aufgrund sinkender Exporte bei stagnierenden oder stei-genden Importen. Gegenstand der vorliegenden Studie ist eine detaillierte Analyse von Ver-änderungen in der geographischen Verteilung des Handels als auch in der Art der Handels-spezialisierung 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-indus-trieller 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 Jugos-lawiens abgesetzt werden. Intra-industrielle Handelsströme sind vor allem unbedeutend für landwirtschaftliche Produkte mit geringer oder keiner Verarbeitung. Eine wesentliche Erklä-rung für diese Resultate ist, dass trotz des Abschlusses verschiedener Freihandelsabkommen mit der EU und Ländern Mittel- und Osteuropas das Protektionsniveau für Agrar- und Ernäh-rungsgüter nach wie vor sehr hoch ist. Als Mitglied der Europäischen Union sieht sich Slo-wenien 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 Restruku-rierung und zur Reallokation von Faktoren zwischen und nicht innerhalb von Branchen führen und damit relativ hohe Anpassungskosten induzieren.

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    Bibliographic Info

    Paper provided by Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO) in its series IAMO Discussion Papers with number 65.

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

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    Keywords: Intra-industry trade; integration; agro-food sector; Intra-industrieller Handel; Integration; Agrar- und Ernährungssektor;

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    1. Qasmi, Bashir A. & Fausti, Scott W., 1999. "Nafta Intra Industry Trade In Agricultural Food Products," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND, Western Agricultural Economics Association 35689, Western Agricultural Economics Association.
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    Cited by:
    1. Levkovych, Inna, 2011. "Der ukrainische Außenhandel mit Produkten der Agrar- und Ernährungswirtschaft: Eine quantitative Analyse aus Sicht traditioneller und neuer Außenhandelstheorien," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 59, number 109520.
    2. 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, European Association of Agricultural Economists 24477, European Association of Agricultural Economists.
    3. Božić, Dragica & Nikolić, Marija M., 2013. "Regional Analysis of Agricultural and Food Trade of Serbia," 135th Seminar, August 28-30, 2013, Belgrade, Serbia, European Association of Agricultural Economists 160374, European Association of Agricultural Economists.

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