IDEAS home Printed from https://ideas.repec.org/a/iag/reviea/v19y2022i2p219-238.html
   My bibliography  Save this article

Reaction Of The Cereal Market To The Disruption Of Trade Flows In Romania

Author

Listed:
  • Mihaela KRUZSLICIKA

    (Institute of Agricultural Economics, Romanian Academy, Bucharest)

Abstract

The paper presents the reaction of the Romanian cereal market to the disruption of trade flows caused by certain shocks, such as the COVID-19 pandemic, which lead to changes with high impact on the functioning of this market, representing an important test for the resilience of the sector. Due to trade liberalization in global markets, including agri-food markets, the competitiveness of exports has become increasingly important, contributing to the creation of the country's competitive advantage. Any restrictions to trade in agri-food products can distort trade flows, and this disruption will have an impact on supply and prices. Maintaining a balance between imports and exports is essential to ensure domestic market stability. International trade in agri-food products plays an important role in global food security. The results show that Romania mainly exports unprocessed agricultural products, with cereals having the largest share in the export structure, cereal supply is dependent on climate change, yet it is one of the products with the lowest volatility. The cereal market shows a more elastic reaction to price responses, even though demand for staple foods is generally inelastic.

Suggested Citation

  • Mihaela KRUZSLICIKA, 2022. "Reaction Of The Cereal Market To The Disruption Of Trade Flows In Romania," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 19(2), pages 219-238.
    • Handle: RePEc:iag:reviea:v:19:y:2022:i:2:p:219-238
    as

    Download full text from publisher

    File URL: http://www.eadr.ro/RePEc/iag/iag_pdf/AERD2202_219-238.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rebekka Burkholz & Frank Schweitzer, 2019. "International crop trade networks: The impact of shocks and cascades," Papers 1901.05872, arXiv.org.
    2. Hubbard, L.J. & Hubbard, Carmen, 2013. "Food security in the United Kingdom: External supply risks," Food Policy, Elsevier, vol. 43(C), pages 142-147.
    3. Derek Headey & Shenggen Fan, 2008. "Anatomy of a crisis: the causes and consequences of surging food prices," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 375-391, November.
    4. E. Gutiérrez-Moya & B. Adenso-Díaz & S. Lozano, 2021. "Analysis and vulnerability of the international wheat trade network," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(1), pages 113-128, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Trucmel Irina-Maria & Vintila Alexandra, 2023. "An Assessment of the Russo-Ukrainian Conflict on the European Cereal Exports Using Network Theory," Journal of Social and Economic Statistics, Sciendo, vol. 12(1), pages 46-62, July.
    2. Qingru Sun & Meiyi Hou & Shuaiwei Shi & Liwei Cui & Zenglei Xi, 2022. "The Influence of Country Risks on the International Agricultural Trade Patterns Based on Network Analysis and Panel Data Method," Agriculture, MDPI, vol. 12(3), pages 1-18, March.
    3. Linqing Liu & Weiran Wang & Xiaofei Yan & Mengyun Shen & Haizhi Chen, 2023. "The cascade influence of grain trade shocks on countries in the context of the Russia-Ukraine conflict," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-28, December.
    4. Hao Xu & Niu Niu & Dongmei Li & Chengjie Wang, 2024. "A Dynamic Evolutionary Analysis of the Vulnerability of Global Food Trade Networks," Sustainability, MDPI, vol. 16(10), pages 1-17, May.
    5. Karakotsios, Achillefs & Katrakilidis, Constantinos & Kroupis, Nikolaos, 2021. "The dynamic linkages between food prices and oil prices. Does asymmetry matter?," The Journal of Economic Asymmetries, Elsevier, vol. 23(C).
    6. Gheorghe Cristian Popescu & Monica Popescu, 2022. "COVID-19 pandemic and agriculture in Romania: effects on agricultural systems, compliance with restrictions and relations with authorities," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(2), pages 557-567, April.
    7. Gore, Christopher D., 2018. "How African cities lead: Urban policy innovation and agriculture in Kampala and Nairobi," World Development, Elsevier, vol. 108(C), pages 169-180.
    8. Krätschell, Karoline & Schmidt, Torsten, 2013. "Long-run trends or short-run fluctuations What establishes the correlation between oil and food prices?," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79798, Verein für Socialpolitik / German Economic Association.
    9. Cudjoe, Godsway & Breisinger, Clemens & Diao, Xinshen, 2010. "Local impacts of a global crisis: Food price transmission, consumer welfare and poverty in Ghana," Food Policy, Elsevier, vol. 35(4), pages 294-302, August.
    10. Rosa, Franco & Vasciaveo, Michela & Weaver, Robert D., 2014. "Agricultural and oil commodities: price transmission and market integration between US and Italy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(2), pages 1-25, August.
    11. Zaremba, Adam & Bianchi, Robert J. & Mikutowski, Mateusz, 2021. "Long-run reversal in commodity returns: Insights from seven centuries of evidence," Journal of Banking & Finance, Elsevier, vol. 133(C).
    12. Chen, Junyi & Kibriya, Shahriar & Bessler, David & Price, Edwin, 2018. "The relationship between conflict events and commodity prices in Sudan," Journal of Policy Modeling, Elsevier, vol. 40(4), pages 663-684.
    13. Jin Guo & Tetsuji Tanaka, 2020. "Examining the determinants of global and local price passthrough in cereal markets: evidence from DCC-GJR-GARCH and panel analyses," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-22, December.
    14. Valin, Hugo & Havlik, Petr & Mosnier, Aline & Obersteiner, Michael, 2012. "Impacts of Alternative Climate Change Mitigation Policies on Food Consumption under various Diet Scenarios," Conference papers 332253, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Natalia Brzezina & Birgit Kopainsky & Erik Mathijs, 2016. "Can Organic Farming Reduce Vulnerabilities and Enhance the Resilience of the European Food System? A Critical Assessment Using System Dynamics Structural Thinking Tools," Sustainability, MDPI, vol. 8(10), pages 1-32, September.
    16. Tiziano Distefano & Guido Chiarotti & Francesco Laio & Luca Ridolfi, 2018. "Spatial distribution of the international food prices: unexpected randomness and heterogeneity," SEEDS Working Papers 0118, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jan 2018.
    17. Raymond B. Frempong & David Stadelmann, 2017. "Does Female Education have a Bargaining Effect on Household Welfare? Evidence from Ghana and Uganda," CREMA Working Paper Series 2017-08, Center for Research in Economics, Management and the Arts (CREMA).
    18. Nkongho Ayuketang Arreyndip, 2021. "Identifying agricultural disaster risk zones for future climate actions," PLOS ONE, Public Library of Science, vol. 16(12), pages 1-16, December.
    19. Philipp Adämmer & Martin T. Bohl, 2018. "Price discovery dynamics in European agricultural markets," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 38(5), pages 549-562, May.
    20. Guhathakurta, Kousik & Dash, Saumya Ranjan & Maitra, Debasish, 2020. "Period specific volatility spillover based connectedness between oil and other commodity prices and their portfolio implications," Energy Economics, Elsevier, vol. 85(C).

    More about this item

    Keywords

    disturbance; market balance; trade; cereals; Romania.;
    All these keywords.

    JEL classification:

    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iag:reviea:v:19:y:2022:i:2:p:219-238. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Corina Saman (email available below). General contact details of provider: https://edirc.repec.org/data/iaacaro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.