Czech Agrarian Trade Comparative Advantages Distribution in Relation to Developed and Developing Countries

Abstract

This article deals with the issues of the current state of commodity structure and distribution of comparative advantages of the Czech agrarian trade in comparison to developed, developing and also in comparison with Commonwealth of Independent States and in relation to other European countries (i.e. non‑EU and CIS countries). The goal of this paper is to identify how the comparative advantages of Czech Agrarian exports are distributed. In addition to this, the article also attempts to identify the main differences in the characteristics of agrarian trade between developed countries on one hand and developing countries on the other hand. The results suggest that the agrarian trade performs very differently in relation to individual groups of countries. The Czech agrarian trade has been progressively developing, specifically in relation to developer countries of the world. In this regard, it is necessary to mention the constantly improving characteristics of the Czech agrarian trade in relation to EU28 countries (however, the comparative advantages are based on low prices and high volumes of exported goods. In relation to developing countries, Czech trade is more or less stagnate (however, the trade is based on items with a higher level of processing and in comparison with developed countries is also based on items with significantly higher unit prices). A rather specific development was also recorded in relation to CIS countries and “other European countries”. The Czech Republic has a highly competitive commodity structure in relation to these countries, which is primarily based on the export of goods with higher value added and relatively high per kilogram prices.