Determinants of variation of potato prices in the European Union

Krzysztof Firleja and Sebastian Kubala

Economia agro-alimentare, 2019, vol. 21, issue 3, 697-707

Abstract: Prices are considered to be an only, directly observable market parameter, deciding on a degree of implementation of functions of market entities. The variability is inherent to prices, in accordance to an attribute of functioning on competitive market. Examination of factors affecting the prices is particularly significant on account of occurrence of many potential variables which may impact their levels and still increasing market ties among particular economies. Potato is one of the basic agricultural raw materials in the world. Potato is of high economic value, mainly through the universal usability both by manufacturers as well as consumers. The purpose of the article was to determine of variables characterizing strong dependency on evolving level of potato prices in the EU countries. Attempts of building a model aimed at depicting potato prices evolution in the European Union countries under an influence of particular variables was performed using panel data models. Conducted analyses allowed to indicate the occurrence of regional variation of potato prices in particular European Union countries. It was also shown that essential impact on a potato prices level is potato production volume, value of gross domestic product and potato import volumes.

JEL-codes: C19 Q13 R10 (search for similar items in EconPapers)
Date: 2019
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