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

Dusan Drabik (), Jan Pokrivcak and Pavel Ciaian

Czech Journal of Economics and Finance (Finance a uver), 2007, vol. 57, issue 9-10, 433-447

Abstract: In the paper the authors 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, the authors can conclude that approximately 31.4 percent of the increase in agricultural imports from the EU15 and CEEC was due to elimination of tariffs as Slovakia (and the other CEECs) joined the EU.

Keywords: agricultural trade; EU enlargement; Slovakia; trade liberalization (search for similar items in EconPapers)
JEL-codes: C20 F14 F15 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:fau:fauart:v:57:y:2007:i:9-10:p:433-447

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