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Vulnerability of European Union Economies in Agro Trade

Author

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  • Lubomír Civín

    (Department of Trade and Finance, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamycka 129, 16500 Prague, Czech Republic)

  • Luboš Smutka

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamycka 129, 16500 Prague, Czech Republic)

Abstract

The European Union (EU) is characterized by a high level of openness to trade, consequently increasing its member countries’ vulnerability to external shocks coming from the rapidly changing global environment. The paper’s objective was to compare and evaluate the factors of the EU agribusiness, its vulnerability and its measurement tools, and consequently to create subgroupings within EU member countries with different levels of vulnerability to exogenous shocks. The study hypothesized that the EU is not a homogenous unit regarding its trade sensitivity and vulnerability. It analyzed this phenomenon using data of recognized international institutions. Its method was a multi-criteria analysis with summative scaling. The assessment of the analysis was provided by the linear aggregation of 19 relevant vulnerability-influencing parameters, including climate change risk and political stability. The study results confirmed the hypothesis of the EU heterogeneity and identified four groups of member countries with different levels of the vulnerability to global shocks. It can improve an understanding of the agrarian sector position within the EU economy and a more precise re-formulation of its Common Agricultural Policy (CAP) priorities under the new conditions requiring the comprehensive resilience of the sector.

Suggested Citation

  • Lubomír Civín & Luboš Smutka, 2020. "Vulnerability of European Union Economies in Agro Trade," Sustainability, MDPI, vol. 12(12), pages 1-33, June.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:12:p:5210-:d:376615
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    References listed on IDEAS

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    Cited by:

    1. Irena Jindřichovská & Erginbay Uğurlu, 2021. "E.U. and China Trends in Trade in Challenging Times," JRFM, MDPI, vol. 14(2), pages 1-19, February.
    2. Francisco Entrena-Durán & Víctor-Manuel Muñoz-Sánchez & Antonio-Manuel Pérez-Flores, 2021. "Sustainability and Development: From Agrarian Development to the Paradigm of Sustainability," Sustainability, MDPI, vol. 13(11), pages 1-6, May.

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