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Determinants of competition in agro-food trade between Central European Countries and the European Union

  • Bojnec, Stefan
  • Ferto, Imre

This paper investigates determinants of competition in agro-food trade between five transition Central European Countries (CEC-5) (Czech Republic, Hungary, Poland, Slovakia, and Slovenia) and the European Union (EU-15) countries during the preenlargement years 1995-2003. We distinguish between one-way exports and imports, and two-way successful and unsuccessful price and quality competition in agro-food trade between the CEC-5 and the EU-15. The effect of trade balance on trade competition is found more significant than the effect of export-import unit values difference. Natural and human factor endowments increase price competition and reduce unsuccessful quality competition. Higher level of economic development reduces quality competition, whereas the size of the economy reduces price competition and increases quality competition. Agricultural labor productivity improves price and quality competition. Less quality differentiated products increase price competition. Research and development (R&D) expenditures improve quality competition.

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File URL: http://purl.umn.edu/7779
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Paper provided by European Association of Agricultural Economists in its series 104th Seminar, September 5-8, 2007, Budapest, Hungary with number 7779.

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Date of creation: 2007
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Handle: RePEc:ags:eaa104:7779
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