Competitiveness of agrarian trade of EU-15 countries in comparison with new EU member states

Abstract

The paper analyses the commodity structure of agrarian trade of the EU countries. The comparative advantages of particular aggregations are accentuated from the view-point of their use on the EU internal market, and on the world market. The analysis is based on an evaluation of comparative advantages by means of a modified Ballas index. It is viewed on two levels, for the EU internal market and the world market. The results of the analysis are shown in a chart. Subsequently, the authors implement an idea arising from a BCG (Boston Consulting Group) matrix on the results of a graphical representation. The aim is to point out mainly those aggregations (SITC, rev. 3) which are, or have a potential to be, a pillar of agri-business, and vice versa to show the aggregations which are non-prospective in the long term, or problematic. The analysis is performed on two levels to utilise differences in the commodity structure of agrarian trade in both the cases of the old (EU-15) and the new EU member states (EU-12) (the member states which enlarged the EU in 2004 and 2007). From the results of the analysis, the significant changes are apparent if we compare commodity structures of trade of the countries of the EU-15 and EU-12.