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Implications of EU Enlargement for the New Member States' Agri-food Trade

Author

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  • Bartosova, Dasa
  • Bartova, Lubica
  • Fidrmuc, Jarko

Abstract

We estimated dynamic panel models for the agri-food trade of six new Member States (the Czech Republic, Latvia, Lithuania, Romania, Slovakia and Slovenia) with selected countries and trade groupings between 1996 and 2005. In general, we found low income elasticities and high price elasticities of import demand for agricultural commodities. The lagged values for trade are highly significant. We also show that accession to the EU increased the new Member States' exports, but had less impact on their imports. The new Member States have gained significantly from liberalised access to the EU agri-food markets.

Suggested Citation

  • Bartosova, Dasa & Bartova, Lubica & Fidrmuc, Jarko, 2007. "Implications of EU Enlargement for the New Member States' Agri-food Trade," Working Papers 7320, TRADEAG - Agricultural Trade Agreements.
  • Handle: RePEc:ags:tragwp:7320
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    File URL: http://purl.umn.edu/7320
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    References listed on IDEAS

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    1. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    2. Ricahrd E. Baldwin & Joseph F. Francois & Richard Portes, 1997. "The costs and benefits of eastern enlargement: the impact on the EU and central Europe," Economic Policy, CEPR;CES;MSH, vol. 12(24), pages 125-176, April.
    3. Frohberg, Klaus & Hartmann, Monika, 1997. "Promoting CEA agricultural exports through association agreements with the EU: why it is not working," IAMO Discussion Papers 1, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    4. Reinhard Neck & Gottfried Haber & Warwick Mckibbin, 2000. "Macroeconomic impacts of European union membership of central and eastern European economies," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 28(1), pages 71-82, March.
    5. Matthieu Bussière & Jarko Fidrmuc & Bernd Schnatz, 2005. "Trade Integration of Central and Eastern European Countries: Lessons from a Gravity Model," Working Papers 105, Oesterreichische Nationalbank (Austrian Central Bank).
    6. Neven, Damien, 1995. "Trade liberalisation with Eastern nations: Some distribution issues," European Economic Review, Elsevier, vol. 39(3-4), pages 622-632, April.
    7. Jarko Fidrmuc & Peter Huber & Jan Jakub Michalek, "undated". "Poland's Accession to the European Union: Demand for Protection of Selected Sensitive Products," WIFO Working Papers 117, WIFO.
    8. Paul Brenton & Francesca Di Mauro, 1998. "Is There Any Potential in Trade in Sensitive Industrial Products Between the CEECs and the EU?," The World Economy, Wiley Blackwell, vol. 21(3), pages 285-304, May.
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    More about this item

    Keywords

    agri-food trade; EU enlargement; dynamic panel data models; Labor and Human Capital; C23; F15; F14;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F15 - International Economics - - Trade - - - Economic Integration
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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