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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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    Cited by:

    1. Nogues, Julio J., 2017. "Mercosur- EU Trade negotiations: ending trade diversion, strengthening trade institutions," MPRA Paper 92287, University Library of Munich, Germany, revised 2017.
    2. M. Bruna Zolin & Utai Uprasen, 2018. "Trade creation and diversion: effects of EU enlargement on agricultural and food products and selected Asian countries," Asia Europe Journal, Springer, vol. 16(4), pages 351-373, December.
    3. Rajcaniova, Miroslava & Pokrivcak, Jan, . "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, vol. 16(2), pages 1-8.
    4. J., Julio, 2019. "Brexit trade impacts' and Mercosur's negotiations with Europe," MPRA Paper 94885, University Library of Munich, Germany.

    More about this item

    Keywords

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    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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