The impact of agricultural performance on foreign trade concentration and competitiveness: empirical evidence from Romanian agriculture
Abstract
Analysing the impact of agricultural performance on foreign trade concentration and competitiveness defines an important step in identifying the opportunities, challenges and proactive measures in designing a functional and marked based agricultural model. The scope of this study is to investigate the evolution of Romania’s the foreign trade competitiveness and its concentration on main destinations during 2007–2016. In this context, in the paper are identified and investigated some of the competitiveness’ mutations arisen from the Romania’s trade flows concentration and restructuration in relation with 26 of the European Union member states. It was used a unique dataset on agro -food trade output and concentration across EU countries to construct measures of trade competitiveness. The results obtained suggest the existence of a dual relationship of the Romanian agriculture competitiveness and its dependence on the EU economic area, by the concentration of the commercial relationships.
Keyword : trade competitiveness, trade flow, agricultural performance, Lorenz curve, Shannon entropy, ANOVA, convergence
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Ali, R., Alwang, J. R., & Siegel, P. B. (1991). Is export diversification the best way to achieve export growth and stability? A look at three African countries (Vol. 729). World Bank Publications. http://documents.worldbank.org/curated/en/635281468774612514/Is-export-diversification-thebest-way-to-achieve-export-growth-and-stability-A-look-at-three-African-countrie
Anderson, K. (2010). Globalization’s effects on world agricultural trade, 1960–2050. Philosophical Transactions of the Royal Society B: Biological Sciences, 365(1554), 3007–3021. https://doi.org/10.1098/rstb.2010.0131
Anderson, K. (2017). Distortionary impacts of food and agricultural trade policies. In Handbook of International Food and Agricultural Policies (Chapter 3). World Scientific Publishing Co Pte Ltd. https://doi.org/10.1142/9789813226487_0003
Andrei, J. V., Dusmanescu, D., & Mieila, M. (2015a). The influences of the cultural models on agricultural production structures in Romania and some EU-28 countries: A perspective. Economics of Agriculture, 62(2), 293–307. https://doi.org/10.5937/ekoPolj1502293A
Andrei, J. V., Panait, M., & Alecu, A. (2015b). Transformations of European agricultural sector, market and model under the influence of Common Agricultural Policy (CAP). In International Conference on Competitiveness of Agro-food and Environmental Economy Proceeding, (Vol. 4, pp. 137–147).
Antimiani, A., Carbone, A., Costantini, V., & Henke, R. (2012). Agri-food exports in the enlarged European Union. Agricultural Economics – Czech, 58(8), 354–366. https://doi.org/10.17221/145/2011-AGRICECON
Arghiroiu, G. A., Cristea, S., & Alecu, I. N. (2015). The Romanian external trade in 2007–2013. Agriculture and Agricultural Science Procedia, 6, 631–638. https://doi.org/10.1016/j.aaspro.2015.08.108
Bojnec, Š., & Fertő, I. (2009). Agro-food trade competitiveness of Central European and Balkan countries. Food Policy, 34(5), 417–425. https://doi.org/10.1016/j.foodpol.2009.01.003
Bojnec, Š., & Fertő, I. (2015). Agri‐food export competitiveness in European Union countries. JCMS: Journal of Common Market Studies, 53(3), 476–492. https://doi.org/10.1111/jcms.12215
Bozek, J., Sin, Al., Nowak, Cz., & Karol, K. (2018). Types of EU countries agrarian structure, based on fuzzy structure classification. Romanian Agricultural Research, 35, 265–273.
Bruinsma, J. (2009). The resource outlook to 2050. By how much do land, water and crop yields need to increase by 2050? In FAO Expert Meeting “How to Feed the World in 2050”, 24–26 June 2009, Rome (pp. 24–26).
Burja, C., & Burja, V. (2016). Farms size and efficiency of the production factors in Romanian agriculture. Economics of Agriculture, 63(2), 361–374. https://doi.org/10.5937/ekoPolj1602361B
Carraresi, L., & Banterle, A. (2015). Agri-food competitive performance in EU countries: A fifteen-year retrospective. International Food and Agribusiness Management Review, 18(2), 37–62.
Carter, M. R., Barham, B. L., & Mesbah, D. (1996). Agricultural export booms and the rural poor in Chile, Guatemala, and Paraguay. Latin American Research Review, 31(1), 33–65.
Ciutacu, C., Chivu, L., & Andrei, J. V. (2015). Similarities and dissimilarities between the EU agricultural and rural development model and Romanian agriculture. Challenges and perspectives. Land Use Policy, 44, 169–176. https://doi.org/10.1016/j.landusepol.2014.08.009
Collier, P., & Gunning, J. W. (1999). Trade shocks in developing countries. Oxford University Press.
Csaki, C., & Jambor, A. (2009). The diversity of effects of EU membership on agriculture in new member states. Policy studies on rural transition No. 2009-4.
Drăgoi, M. C., Andrei, J. V., Mieilă, M., Panait, M., Dobrotă, C. E., & Lădaru, R. G. (2018). Food safety and security in Romania –An econometric analysis in the context of national agricultural paradigm transformation. Amfiteatru Economic, 20(47), 134–150. https://doi.org/10.24818/EA/2018/47/134
Drost, S. (2013). The agricultural sector in Poland and Romania and its performance under the EUinfluence. Institute for East-European Studies.
Estrades, C., & Terra, M. I. (2012). Commodity prices, trade, and poverty in Uruguay. Food Policy, 37(1), 58–66. https://doi.org/10.1016/j.foodpol.2011.11.007
Eurostat. (2019). Agriculture section, complete database. https://ec.europa.eu/eurostat/web/agriculture/data/database
Feher, A., Gosa, V., Raicov, M., Harangus, D., & Condea, B. V. (2017). Convergence of Romanian and Europe Union agriculture – evolution and prospective assessment. Land use Policy, 67, 670–678. https://doi.org/10.1016/j.landusepol.2017.06.016
Feler, L., & Senses, M. Z. (2017). Trade shocks and the provision of local public goods. American Economic Journal: Economic Policy, 9(4), 101–43. https://doi.org/10.1257/pol.20150578
Figiel, S., Kuberska, D., & Kufel, J. (2012, June). Development of clusters and international competitiveness of the agro-food sectors in the EU countries. In 126th EAAE Seminar New challenges for EU agricultural sector and rural areas. Which role for public policy? (pp. 27–29).
Fraser, E. D., & Stringer, L. C. (2009). Explaining agricultural collapse: Macro-forces, micro-crises and the emergence of land use vulnerability in southern Romania. Global Environmental Change, 19(1), 45–53. https://doi.org/10.1016/j.gloenvcha.2008.11.001
García‐Alvarez‐Coque, J. M. (2002). Agricultural trade and the Barcelona process: Is full liberalisation possible? European Review of Agricultural Economics, 29(3), 399–422. https://doi.org/10.1093/eurrag/29.3.399
Gavrilescu, C., & Voicilas, D. M. (2014). Competitiveness of the Romanian agri-food trade and the new agricultural policies. Zagadnienia ekonomiki rolnej, 4(341), 106–116.
Giordani, P. E., Rocha, N., & Ruta, M. (2016). Food prices and the multiplier effect of trade policy. Journal of International Economics, 101, 102–122. https://doi.org/10.1016/j.jinteco.2016.04.001
Giurgiu, A. (2008). Comerţul intra european: o nouă perspectivă asupra comerţului exterior al României. Editura Economică, București.
Gonzalez, S. M. (2018). What do consumers appreciate about on-demand economy workers? Psychosociological Issues in Human Resource Management, 6(2), 29–43. https://doi.org/10.22381/PIHRM6220182
Graessley, S., Horak, J., Kovacova, M., Valaskova, K., & Poliak, M. (2019). Consumer attitudes and behaviors in the technology-driven sharing economy: Motivations for participating in collaborative consumption. Journal of Self-Governance and Management Economics, 7(1), 25–30. https://doi.org/10.22381/JSME7120194
Hacche, G., Carreras, O., Kirby, S., Lenoel, C., Liadze, I., Piggott, R., Thamotheram, C., & Warren, J. (2017). Trade liberalization and poverty: the evidence so far. National Institute Economic Review, 240(1), F50–F60. https://doi.org/10.1177/002795011724000105
Hallet, M. (2002). Regional specialisation and concentration in the EU. In J. R. Cuadrado-Roura & M. Parellada (Eds.), Regional Convergence in the European Union (pp. 53–76). Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-04788-0_3
Harrison, A. (1996). Openness and growth: A time-series, cross-country analysis for developing countries. Journal of Development Economics, 48(2), 419–447. https://doi.org/10.1016/0304-3878(95)00042-9
Huang, H., von Lampe, M., & van Tongeren, F. (2011). Climate change and trade in agriculture. Food Policy, 36(Suppl. 1), S9–S13. https://doi.org/10.1016/j.foodpol.2010.10.008
Istudor, N., Ion, R. A., Petrescu, I. E., & Hrebenciuc, A. (2019). Agriculture and the Twofold relationship between food security and climate change. Evidence from Romania. Amfiteatru Economic, 21(51), 285–293. https://doi.org/10.24818/EA/2019/51/285
Jaba, E. (2002). Statistica (Ediţia a III-a). Editura Economică, Bucureşti.
Jing, W. (2018). The competitiveness and its stability of fruit products: The case of China. Custos E Agronegocio on Line, 14(2), 90–111.
Kanter, D. R., Musumba, M., Wood, S. L., Palm, C., Antle, J., Balvanera, P., Dale, V. H., Havlik, P., Kline, K. L., Scholes, R. J., Thornton, P., Tittonell, P., & Andelman, S. (2018). Evaluating agricultural trade-offs in the age of sustainable development. Agricultural Systems, 163, 73–88. https://doi.org/10.1016/j.agsy.2016.09.010
Khiyavi, P. K., Moghaddasi, R., & Yazdani, S. (2013). Investigation of factors affecting the international trade of agricultural products in developing countries. Life Science Journal, 10(3s), 409–414.
Kideckel, D. (2019). East European communities: The struggle for balance in turbulent times. Routledge. https://doi.org/10.4324/9780429046612
Koppel, J., & Kolencik, J. (2018). The future of workers: contingent forms of labor contracting in the platform economy. Psychosociological Issues in Human Resource Management, 6(1), 172–177. https://doi.org/10.22381/PIHRM6120189
Krugman, P. (1994). Competitiveness: a dangerous obsession. Foreign Affairs, 73(2), 28–44. https://doi.org/10.2307/20045917
Manoleli, D. G., Giurca, D., Chivu, L., & Câmpeanu, V. (2004). Ierarhizarea priorităţilor de dezvoltare agricolă şi rurală în România. Influenţele noii reforme a Politicii Agricole Comunitare. Studiul nr. 11. Insitutul European din România, București.
Moon, W., & Pino, G. (2016). Comparative advantage or competitive advantage in explaining agricultural trade? In 2016 Annual Meeting. San Antonio, Texas, Southern Agricultural Economics Association.
Muntean, M. C., Nistor, R., Manea, L. D., & Virlanuta, F. O. (2018). Analysis of export competitiveness of Romanian agricultural products. Risk in Contemporary Economy, 139–157.
Niculae, I., & Costaiche, G. M. (2015). Study regarding Romanian meat production and trade. Agriculture and Agricultural Science Procedia, 6, 682–689. https://doi.org/10.1016/j.aaspro.2015.08.121
NIS. (2018). National statistical yerabook 2017. National Institute of Statistics. Bucharest. http://www.insse.ro/cms/ro/tags/anuarul-statistic-al-romaniei
NIS. (2019). TEMPO-online database. National Institute of Statistics, Bucharest. http://statistici.insse.ro:8077/tempo-online/#/pages/tables/insse-table
OECD/FAO. (2010). OECD–FAO Agricultural Outlook 2010–2019. Agriculture Organization of the United Nations. Paris, Rome. https://doi.org/10.1787/agr_outlook-2019-en
Petrescu-Mag, R. M., Petrescu, D. C., Azadi, H., & Petrescu-Mag, I. V. (2018). Agricultural land use conflict management – Vulnerabilities, law restrictions and negotiation frames. A wake-up call. Land Use Policy, 76, 600–610. https://doi.org/10.1016/j.landusepol.2018.02.040
Polimeni, J. M., Iorgulescu, R. I., & Mihnea, A. (2018). Understanding consumer motivations for buying sustainable agricultural products at Romanian farmers markets. Journal of Cleaner Production, 184, 586–597. https://doi.org/10.1016/j.jclepro.2018.02.241
Popescu, A., Alecu, I. N., Dinu, T. A., Stoian, E., Condei, R., & Ciocan, H. (2016). Farm structure and land concentration in Romania and the European Union’s Agriculture. Agriculture and Agricultural Science Procedia, 10, 566–577. https://doi.org/10.1016/j.aaspro.2016.09.036
Popescu, G. H. (2018). Participation in the sharing economy: Labor, exchange, and consumption. An empirical analysis. Journal of Self-Governance and Management Economics, 6(1), 122–127. https://doi.org/10.22381/JSME6120185
Popescu, M., Popescu, C., Ruska-Banda, A., & Csosz, I. (2018). Differences between Romanian and European agriculture. Management Agricol, 20(2), 94–99.
Porter, M. (1990). The competitive advantage of nations. MacMillan, London. https://doi.org/10.1007/978-1-349-11336-1
Qineti, A., Rajcaniova, M., & Matejkova, E. (2009). The competitiveness and comparative advantage of the Slovak and the EU agri-food trade with Russia and Ukraine. Agricultural Economics – Czech, 55(8), 375–383. https://doi.org/10.17221/42/2009-AGRICECON
Rotariu, T., Bădescu, G., Culic, I., Mezei, E., & Mureșan, C. (2006). Metode statistice applicate în științele sociale. Editura Polirom.
Rusali, A. M. (2013). Evaluation of the Romanian agricultural products specialization in the IntraSectoral foreign trade. Agricultural Economics and Rural Development, 10(1), 77–83.
Rusali, M. A. (2014). Agrifood competitive performances within Romania’s foreign trade pattern: Evaluation and alerts. Procedia Economics and Finance, 8, 632–639. https://doi.org/10.1016/S2212-5671(14)00138-5
Samen, S. (2010). A primer on export diversification: Key concepts, theoretical underpinnings and empirical evidence. Growth and Crisis Unit. World Bank Institute, 1–23.
Sin, A. (2013). Outlook on Romanian agricultural extension. Romanian Agricultural Research, 30, 387–390.
Stehrer, R., Leitner, S., Macias, M., Mirza, D., Pindyuk, O., Siedschlag, I., Studnicka, Z., & Stöllinger, R. (2016). The evolving composition of intra-EU trade over time (Final Report). European Commission.
Swinnen, J. F., Dries, L., & Macours, K. (2005). Transition and agricultural labor. Agricultural Economics, 32(1), 15–34. https://doi.org/10.1111/j.0169-5150.2005.00002.x
Teignier, M. (2018). The role of trade in structural transformation. Journal of Development Economics, 130, 45–65. https://doi.org/10.1016/j.jdeveco.2017.09.002
Turtoi, C., Toma, C., & Gavrilescu, C. (2018). Evolution and development potential for inputs in the Romanian agriculture. Economics of Agriculture, 59, 415–421.
van der Zanden, E. H., Verburg, P. H., Schulp, C. J., & Verkerk, P. J. (2017). Trade-offs of European agricultural abandonment. Land use Policy, 62, 290–301. https://doi.org/10.1016/j.landusepol.2017.01.003
Vasile, A. J., & Ungureanu, A. (2014). The importance of economic structure evolution in achieving performance-from agrarian economy to competitiveness in Romanian economy. Economics of Agriculture, 61(4), 945–957. https://doi.org/10.5937/ekoPolj1404945A
Vatn, A. (2002). Multifunctional agriculture: Some consequences for international trade regimes. European Review of Agricultural Economics, 29(3), 309–327. https://doi.org/10.1093/eurrag/29.3.309
Viccaro, M., Rocchi, B., Cozzi, M., & Romano, S. (2018). SAM multipliers and subsystems: structural analysis of the Basilicata’s agri-food sector. Bio-based and Applied Economics, 7(1), 19–38.
Vlad, I. M., Beciu, S., Stoicea, P., & Patrascu, G. (2012). The Romanian external trade in live animals and animal products. Scientific Papers, 12(4), 155–158.
Vochozka, M., Kliestik, T., Kliestikova, J., & Sion, G. (2018). Participating in a highly automated society: How artificial intelligence disrupts the job market. Economics, Management, and Financial Markets, 13(4), 57–62. https://doi.org/10.22381/EMFM13420185
Wagan, S. A., Memon, Q. U. A., Chunyu, D., & Jingdong, L. (2018). A comparative study on agricultural production efficiency between China and Pakistan using Data Envelopment Analysis (DEA). Custos E Agronegocio on Line, 14(3), 169–190.
Wijnands, J. H., van der Meulen, B. M., & Poppe, K. J. (2007). Competitiveness of the European food industry: An economic and legal assessment 2007. Office for Official Publications of the European Communities.
Winters, L. A., McCulloch, N., & McKay, A. (2004). Trade liberalization and poverty: The evidence so far. Journal of Economic Literature, 42(1), 72–115. https://doi.org/10.1257/002205104773558056
Yan, W., & Deng, G. (2019). Origin of production shocks, agricultural price spikes and trade policy. The Manchester School, 87(1), 81–102. https://doi.org/10.1111/manc.12219
Zaharia, M., Pătrascu, A., Gogonea, M., Tănăsescu, A., & Popescu, C. (2017). A cluster design on the influence of energy taxation in shaping the new EU-28 economic paradigm. Energies, 10(2), 257. https://doi.org/10.3390/en10020257
Zaman, G., & Georgescu, G. (2018). Studiu retrospective privind comertul exterior al României în ultimii 100 de ani [A retrospective study on Romania’s external trade in the past 100 years] (No. 89707). University Library of Munich, Germany.