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Evaluation of the Common Agricultural Policy's Impact upon Inflation Rate in Central, Eastern and Southern Europe Countries

Author

Listed:
  • Ovidiu Stoica

    (University of Iasi, Romania.)

  • Monica Damian

    (University of Iasi, Romania.)

Abstract

The goal of this paper is to estimate the inflationary effect of adoption of the Common Agricultural Policy in countries which joined the European Union in 2004, using two approaches. The first one supposes the comparison of consumer food prices before (May-December 2001-2003 and January April 2002-2004) and after joining the European Union (May December 2004 and January April 2005), in all ten states. The second approach consist in the application of a multifactorial regression model for the period 2003-2010 in six countries: the Czech Republic, Hungary, Latvia, Lithuania, Slovakia and Slovenia. The results of the study shows that, contrary to the usual perception, the influence of the agricultural products prices on the food price and, implicitly, on the consumer prices have been relatively low in all the analysed countries, in some countries being counterbalanced by the appreciation of the national currency and the elimination of import custom duties.

Suggested Citation

  • Ovidiu Stoica & Monica Damian, 2013. "Evaluation of the Common Agricultural Policy's Impact upon Inflation Rate in Central, Eastern and Southern Europe Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 3(1), pages 229-236.
    • Handle: RePEc:eco:journ1:2013-01-23
    as

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    References listed on IDEAS

    as
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    2. Frank Fuller & John C. Beghin & Jacinto Fabiosa & Samarendu Mohanty & Cheng Fang & Phillip Kaus, 2002. "Accession of the Czech Republic, Hungary and Poland to the European Union: Impacts on Agricultural Markets," The World Economy, Wiley Blackwell, vol. 25(3), pages 407-428, March.
    3. Georgakopoulos, Theodore A, 1990. "The Impact of Accession on Food Prices, Inflation and Food Consumption in Greece," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 17(4), pages 485-493.
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    5. Manfred Fluch & Fabio Rumler, 2005. "Price Developments in Austria after EU Accession and in Monetary Union," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 69-89.
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    More about this item

    Keywords

    EU Accession; Inflation Rate; Common Agricultural Policy; Food Prices;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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