IDEAS home Printed from https://ideas.repec.org/p/ags/iamodp/14932.html
   My bibliography  Save this paper

Quantitative Analysis Of The Impacts Of Croatia´S Agricultural Trade Policy On The Agri-Food Sector

Author

Listed:
  • Weingarten, Peter
  • Frohberg, Klaus
  • Winter, Etti Maria
  • Schreiber, Catrin

Abstract

Croatia recently signed several trade liberalisation agreements. The cornerstones of its trade policy are WTO membership, the Stabilisation and Association Agreement with the EU and Croatia's application of membership as well as bilateral free trade agreements within the Stability Pact for South Eastern Europe. The objective of this paper is to quantify the impact of Croatia's agricultural trade policy on the agri-food sector. For the analysis, a partial equilibrium model based on 1999/2000 data is used. Trade between Croatia and Bosnia and Herzegovina, Hungary, Slovenia, the EU-15 and the rest of the world is modelled for 12 product groups. Three liberalisation scenarios are analysed for the years 2002 and 2005. The scenarios differ with regard to the tariff changes. In general, the model results indicate that reciprocal trade liberalisation is welfare improving for Croatia. The increase in consumer welfare is larger than the decline in farmers' profits and the loss of governmental tariff revenues. In conclusion, the continuation of trade liberalisation is to be recommended. However, trade policy alone will not solve the existing problems of the agri-food sector, and transitional compensation measures could be considered to avoid unacceptable hardship. The benefits of trade liberalisation are primarily to be seen in an improved access to international markets, which probably enables Croatian food processors to realise economies of scale. In addition, internationally binding commitments such as trade agreements are likely to foster the internal and international political credibility and reduce political risks. ZUSAMMENFASSUNG QUANTITATIVE ANALYSE DER AUSWIRKUNGEN VON KROATIENS AGRARHANDELSPOLITIK AUF DEN AGRAR- UND ERNÄHRUNGSSEKTOR In den letzten Jahren hat Kroatien mehrere Handelsabkommen unterzeichnet. Die Hauptelemente der kroatischen Handelspolitik sind die Mitgliedschaft in der WTO, das Stabilisierungsund Assoziierungsabkommen mit der EU und der Antrag auf EU-Mitgliedschaft sowie die bilateralen Freihandelsabkommen innerhalb des Stabilitätspaktes für Südosteuropa. Ziel des vorliegenden Beitrages ist es, die Auswirkungen dieser Agrarhandelspolitik auf den kroatischen Agrar- und Ernährungssektor zu quantifizieren. Für die Analyse wird ein partielles Gleichgewichtsmodell verwendet, das auf Daten der Jahre 1999/2000 basiert. Für 12 Produktgruppen wird Kroatiens Handel mit Bosnien und Herzegowina, Ungarn, Slowenien, der EU-15 und dem Rest der Welt modelliert. Für die Jahre 2002 und 2005 werden drei Liberalisierungsszenarien untersucht, die sich bezüglich der Zolländerungen unterscheiden. Insgesamt zeigen die Modellergebnisse, das eine wechselseitige Handelsliberalisierung wohlfahrtssteigernde Effekte für Kroatien hat. Der Anstieg der Konsumentenwohlfahrt übersteigt den Einkommensrückgang der Landwirte und den Verlust an staatlichen Zolleinnahmen. Daher ist eine Fortsetzung der Handelsliberalisierung empfehlenswert. Allerdings kann die Handelspolitik alleine die existierenden Probleme im Agrar- und Ernährungssektor Kroatiens nicht lösen. Um unerwünschte Härten zu vermeiden, könnten für eine Übergangsphase Kompensationsmaßnahmen in Betracht gezogen werden. Der Nutzen einer Handelsliberalisierung ist vor allem in einem verbesserten Zugang zu internationalen Märkten zu sehen. Dies ermöglicht es kroatischen Verarbeitern wahrscheinlich, Skaleneffekte zu realisieren. Außerdem erhöhen international bindende Verpflichtungen wie Handelsabkommen die interne und internationale politische Glaubwürdigkeit und tragen damit dazu bei, politische Risiken zu reduzieren.

Suggested Citation

  • Weingarten, Peter & Frohberg, Klaus & Winter, Etti Maria & Schreiber, Catrin, 2003. "Quantitative Analysis Of The Impacts Of Croatia´S Agricultural Trade Policy On The Agri-Food Sector," IAMO Discussion Papers 14932, Institute of Agricultural Development in Transition Economies (IAMO).
  • Handle: RePEc:ags:iamodp:14932
    DOI: 10.22004/ag.econ.14932
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/14932/files/dp030056.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.14932?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. McDaniel, Christine A. & Balistreri, Edward J., 2002. "A Discussion on Armington Trade Substitution Elasticities," Working Papers 15856, United States International Trade Commission, Office of Economics.
    2. Rutherford, Thomas F., 1995. "Extension of GAMS for complementarity problems arising in applied economic analysis," Journal of Economic Dynamics and Control, Elsevier, vol. 19(8), pages 1299-1324, November.
    3. Robinson, Sherman & Thierfelder, Karen, 2002. "Trade liberalisation and regional integration: the search for large numbers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(4), pages 1-20.
    4. David L. Ryan & Terence J. Wales, 1999. "Flexible And Semiflexible Consumer Demands With Quadratic Engel Curves," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 277-287, May.
    5. Weingarten, Peter & Frohberg, Klaus & Winter, Etti & Schreiber, Catrin, 2003. "Quantitative analysis of the impacts of Croatia's agricultural trade policy on the agri-food sector," IAMO Discussion Papers 56, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    6. Wahl, Olaf & Weber, Gerald & Frohberg, Klaus, 2000. "Documentation Of The Central And Eastern European Countries Agricultural Simulation Model (Ceec-Asim Version 1.0)," IAMO Discussion Papers 14942, Institute of Agricultural Development in Transition Economies (IAMO).
    7. Fritz Breuss, 2001. "Teilprojekt 12: Makroökonomische Auswirkungen der EU-Erweiterung auf alte und neue Mitglieder," WIFO Studies, WIFO, number 19838.
    8. Arvind Panagariya, 2000. "Preferential Trade Liberalization: The Traditional Theory and New Developments," Journal of Economic Literature, American Economic Association, vol. 38(2), pages 287-331, June.
    9. Bhagwati, Jagdish & Greenaway, David & Panagariya, Arvind, 1998. "Trading Preferentially: Theory and Policy," Economic Journal, Royal Economic Society, vol. 108(449), pages 1128-1148, July.
    10. Giancarlo Gandolfo, 2014. "International Trade Theory and Policy," Springer Texts in Business and Economics, Springer, edition 2, number 978-3-642-37314-5, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Möllers, Judith & Zier, Patrick & Frohberg, Klaus & Buchenrieder, Gertrud & Bojnec, Štefan, 2009. "Croatia's EU accession: socio-economic assessment of farm households and policy recommendations," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 48, number 53665.
    2. Etti Maria WINTER & Klaus FROHBERG, 2010. "Using Flexible McFadden Export Supply and Import Demand Functions for Bilateral Trade Policy Analysis," EcoMod2004 330600160, EcoMod.
    3. Weingarten, Peter & Frohberg, Klaus & Winter, Etti & Schreiber, Catrin, 2003. "Quantitative analysis of the impacts of Croatia's agricultural trade policy on the agri-food sector," IAMO Discussion Papers 56, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).

    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. Etti Maria WINTER & Klaus FROHBERG, 2010. "Using Flexible McFadden Export Supply and Import Demand Functions for Bilateral Trade Policy Analysis," EcoMod2004 330600160, EcoMod.
    2. Tokarick, Stephen, 2011. "Should Countries Worry About Immiserizing Growth?," Conference papers 332133, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Sangeeta Khorana & Badri G. Narayanan, 2017. "Modelling Effects of Tariff Liberalisation on India’s Key Export Sectors: Analysis of the EU–India Free Trade Agreement," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 11(1), pages 1-22, February.
    4. Gutiérrez, Gabriel, 2005. "Ex-post evaluation of the employment effects of a preferential trade agreement: methodological issues, illustrated with a reference to Chile," Comercio Internacional 4399, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. Arvind Panagariya, 2003. "The “Gains” from Preferential Trade Liberalization in the CGE," International Trade 0308005, University Library of Munich, Germany.
    6. Xiao-guang Zhang & George Verikios, 2006. "Providing Duty-Free Access to Australian Markets for Least-Developed COuntries: a General Equilibrium Analysis," Economics Discussion / Working Papers 06-09, The University of Western Australia, Department of Economics.
    7. Langhammer, Rolf J. & Wößmann, Ludger, . "Erscheinungsformen regionaler Integrationsabkommen im weltwirtschaftlichen Ordnungsrahmen: Defizite und Dynamik," Chapters in Economics,, University of Munich, Department of Economics.
    8. Mr. Tubagus Feridhanusetyawan, 2005. "Preferential Trade Agreements in the Asia-Pacific Region," IMF Working Papers 2005/149, International Monetary Fund.
    9. Anne O. Krueger, 1999. "Are Preferential Trading Arrangements Trade-Liberalizing or Protectionist?," Journal of Economic Perspectives, American Economic Association, vol. 13(4), pages 105-124, Fall.
    10. Berger, Helge & Nitsch, Volker, 2008. "Gotcha! A Profile of Smuggling in International Trade," Conference papers 331735, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. A. Ganesh Kumar & Gordhan Kumar Saini, 2007. "Economic co-operation in South Asia: The Dilemma of SAFTA and beyond," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2007-017, Indira Gandhi Institute of Development Research, Mumbai, India.
    12. Kowalski, Przemyslaw, 2008. "Understanding BRIICS’ trade performance: analysis of unobserved heterogeneity in the gravity model of international trade," Conference papers 331690, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Oyewumi, Olubukola Ayodeju, 2005. "Modeling tariff rate quotas in the South African livestock industry," Master's Degree Theses 28064, University of the Free State, Department of Agricultural Economics.
    14. Prema-chandra Athukorala & Dayaratna Silva, 2019. "The FTA debate in Sri Lanka: Rhetoric and Reality," ASARC Working Papers 2019-03, The Australian National University, Australia South Asia Research Centre.
    15. Susanto, Dwi & Rosson, C. Parr & Adcock, Flynn J., 2007. "Trade Creation and Trade Diversion in the North American Free Trade Agreement: The Case of the Agricultural Sector," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(1), pages 121-134, April.
    16. Philippa Dee, 2005. "The Australia-US Free Trade Agreement: An Assessment," Asia Pacific Economic Papers 345, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    17. Jong‐Wha Lee & Innwon Park, 2005. "Free Trade Areas in East Asia: Discriminatory or Non‐discriminatory?," The World Economy, Wiley Blackwell, vol. 28(1), pages 21-48, January.
    18. Miljkovic, Dragan & Paul, Rodney, 2003. "Agricultural trade in North America: Trade creation, regionalism and regionalisation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(3), pages 1-18, September.
    19. Takaaki Aoki, 2008. "Some aspects on regional integration, comparative advantage and consumer's diversity," Applied Economics, Taylor & Francis Journals, vol. 40(18), pages 2361-2368.
    20. Constantinos Syropoulos, 2002. "On Tariff Preferences And Delegation Decisions In Customs Unions: A Heckscher--Ohlin Approach," Economic Journal, Royal Economic Society, vol. 112(481), pages 625-648, July.

    More about this item

    Keywords

    International Relations/Trade;

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    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:ags:iamodp:14932. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iamoode.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.