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Trade Creation and Diversion in the Enlarged EU Market: Evidence for Agricultural Trade in Slovakia

Author

Listed:
  • Dusan Drabik
  • Jan Pokrivcak
  • Pavel Ciaian

Abstract

In the paper we analyze the changes in agricultural trade patterns in Slovakia influenced by the gradual trade liberalization that occurred prior to European Union enlargement in 2004. The results show a significant trade-diversion effect of the enlargement on Slovak agricultural trade. A one-percentage-point reduction in the agricultural tariff rate of Slovakia increases agricultural imports from EU15 and Central and East European countries (CEEC) by around 3 percent. Given that the average reduction in tariff rates was 10.4 percent, approximately 31.4 percent of the increase in agricultural imports from the EU15 and CEEC was the effect of EU accession.

Suggested Citation

  • Dusan Drabik & Jan Pokrivcak & Pavel Ciaian, 2007. "Trade Creation and Diversion in the Enlarged EU Market: Evidence for Agricultural Trade in Slovakia," EERI Research Paper Series EERI_RP_2007_03, Economics and Econometrics Research Institute (EERI), Brussels.
  • Handle: RePEc:eei:rpaper:eeri_rp_2007_03
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    References listed on IDEAS

    as
    1. Chevassus-Lozza, Emmanuelle & Majkovic, Darja & Persillet, Vanessa & Unguru, Manuela, 2005. "Technical Barriers to Trade in the European Union : Importance for the New EU Members. An Assessment for Agricultural and Food Products," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24621, European Association of Agricultural Economists.
    2. Ciaian, Pavel & Swinnen, Johan F.M., 2007. "Distortions to Agricultural Incentives in Central and Eastern Europe," Agricultural Distortions Working Paper 48385, World Bank.
    3. Peter H. Egger & Michael Pfaffermayr, 2013. "The Pure Effects of European Integration on Intra-EU Core and Periphery Trade," The World Economy, Wiley Blackwell, vol. 36(6), pages 701-712, June.
    4. Soloaga, Isidro & Alan Wintersb, L., 2001. "Regionalism in the nineties: what effect on trade?," The North American Journal of Economics and Finance, Elsevier, vol. 12(1), pages 1-29, March.
    5. Anne O. Krueger, 1999. "Trade Creation and Trade Diversion Under NAFTA," NBER Working Papers 7429, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Rajcaniova, Miroslava & Pokrivcak, Jan, 2013. "Asymmetry in Price Transmission Mechanism: The Case of Slovak Potato Market," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra Provider-Homepage: http://www.roaae.org;Association of Agricultural Economists in Slovakia (APES), vol. 16(2).

    More about this item

    Keywords

    Trade liberalization; trade diversion and creation; EU accession;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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