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Competitiveness and comparative advantage in Hungarian agriculture

  • Imre Ferto

    ()

    (Institute of Economics of Hungarian Academy of Sciences)

  • Lionel J. Hubbard

    ()

    (Department of Agricultural Economics and Food Marketing, University of Newcastle upon Tyne, UK)

We examine the competitiveness of Hungarian agriculture in relation to that of the EU, based on four indices of revealed comparative advantage, for the period 1992 to 1998. Consistency tests suggest that the indices are less satisfactory as cardinal and ordinal measures, but are useful in identifying whether or not Hungary has a comparative advantage in a particular product group. Despite significant changes in Hungarian agriculture during the 1990s, the results indicate that the pattern of comparative advantage has remained stable. Our findings suggest that Hungary has a comparative advantage for live animals and meat, but not for cereals, contradicting the findings of previous studies which have used different approaches to measuring competitiveness.

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Paper provided by Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences in its series IEHAS Discussion Papers with number 0102.

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Length: 22 pages
Date of creation: Jan 2001
Date of revision:
Handle: RePEc:has:discpr:0102
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  1. E. Wesley F. Peterson & Siva Rama Krishna Valluru, 2000. "Agricultural Comparative Advantage and Government Policy Interventions," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(3), pages 371-387.
  2. Thomas Vollrath, 1991. "A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(2), pages 265-280, June.
  3. Gual, Jordi & Martín, Carmela, 1994. "Trade and Foreign Direct Investment with Central and Eastern Europe: Its Impact on Spain," CEPR Discussion Papers 1006, C.E.P.R. Discussion Papers.
  4. Hoekman, Bernard & Djankov, Simeon, 1997. "Determinants of the Export Structure of Countries in Central and Eastern Europe," World Bank Economic Review, World Bank Group, vol. 11(3), pages 471-87, September.
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