Abstract
The paper, based on RCA, LFI and GL indices, and logistic regression analysis, allowed us to track the dynamics of the comparative advantage/disadvantage of the Czech Republic in individual commodity aggregates in relation to individual EU partners, and to comprehend the role of the main production factors. The only production factor with a statistically significant effect is capital. Trade with countries richly endowed with agricultural land and capital, in most cases, appeared not favorable for the Czech Republic in terms of having a comparative advantage over them, if measured with LFI index. The values of the GL index disclosed that trade with these countries is mostly of an inter-industry character. The analysis revealed the following top-3 mostly competitive Czech aggregates: S3-08 (animal feed stuff), S3-06 (sugar and sugar preparations), along with S3-04 (cereals and cereal preparations). Some aggregates appeared to not have any comparative advantage: S3-01 (meat, meat preparations), S3-05 (vegetables and fruits), and S3-41 (animal oils and fats). Speaking of developmental trends, from 2000 to 2019 the Czech Republic has managed to improve its position in agri-food trade within the EU-27 by 43.81% if measured with LFI, and by 51.63% if measured with RCA. These positive changes also appeared to be statistically significant.
Highlights
There is no doubt that food security is one of the biggest development challenges humanity faces in the 21st century [1]
In our analysis, focused on Czech comparative advantage in agricultural trade with regard to EU-27 countries and its dynamics, we investigate the structure of trade linkages between the Czech Republic and its EU partners employing, as Latruffe [18] suggests, several indicators, concretely Revealed Comparative Advantage (RCA), Lafay index (LFI) and GL indices, in combination to increase their power and reliability of a research
As it can be seen from the above given tables, the frequencies of positive cases, according to the LFI
Summary
There is no doubt that food security is one of the biggest development challenges humanity faces in the 21st century [1]. According to Benuš et al [2] the agri-food industry is a key industry in every national economy that is responsible for food safety The competitiveness of this sector has been of central interest to policymakers, entrepreneurs, and researchers. In this context, the production of agricultural commodities and products, and their processing, trade and distribution should be among the primary interests of all countries all around the world. As Jenícek and Krepl [3] argue, the whole process of foreign trade is complicated by a number of factors (prices, political distortions, etc.) that often lead to exporting even those products which might have been realized domestically, and on the other hand, importing such commodity groups which compete with domestic production and secure a wider assortment of supply
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