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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, Stefan
  • Hartmann, Monika

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 imports 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 reallocation of factors will have to occur between and not within industries.

Suggested Citation

  • Bojnec, Stefan & Hartmann, Monika, 2004. "Agricultural And Food Trade In Central And Eastern Europe: The Case Of Slovenian Intra-Industry Trade," IAMO Discussion Papers 92027, Institute of Agricultural Development in Transition Economies (IAMO).
    • Handle: RePEc:ags:iamodp:92027
    DOI: 10.22004/ag.econ.92027
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    Cited by:

    1. Luka, Oksana & Levkovych, Inna, 2004. "Intra-industry trade in agricultural and food products: the case of Ukraine," IAMO Discussion Papers 78, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    2. Luka, Oksana & Levkovych, Inna, 2004. "Intra-Industry Trade In Agricultural And Food Products: The Case Of Ukraine," IAMO Discussion Papers 14923, Institute of Agricultural Development in Transition Economies (IAMO).
    3. 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 24477, European Association of Agricultural Economists.
    4. 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 Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 59, number 109520.
    5. Stefan Bojnec & Darja Majkovic, 2006. "Globalization of Slovenian Agricultural and Food Trade," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 4(4), pages 347-361.
    6. Božić, Dragica & Nikolić, Marija M., 2013. "Regional Analysis of Agricultural and Food Trade of Serbia," 135th Seminar, August 28-30, 2013, Belgrade, Serbia 160374, European Association of Agricultural Economists.
    7. Veljko VUKOJE & Ivan DOBRENOV, 2011. "Financial position of food industry in vojvodina during transition period," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 57(4), pages 185-198.

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    More about this item

    Keywords

    Agribusiness; Agricultural and Food Policy; Industrial Organization; Institutional and Behavioral Economics; International Development; International Relations/Trade; Production Economics; Productivity Analysis;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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