Czech Trade Research Articles

Changes in the Czech agrarian foreign trade competitiveness - different groups of partners' specifics

The territorial and commodity structure of the Czech agrarian foreign trade underwent significant changes over the last fifteen years. These changes affected not only the structure, but also the value, volume, unit prices and competitiveness. The presented paper provides the basic overview of the individual significant changes. The main goal of the paper is to specify changes in the area of the Czech agrarian foreign trade competitiveness. This competitiveness is analysed not only in relation to global markets, but it is also analysed in relation to different groups of countries. Differences in competiveness are analysed in relation to the European Union (EU 28), the Commonwealth of Independent Countries, other European countries, the OECD members, and developing countries. In addition, competitiveness is also analysed in two specific dimensions. The agricultural market represents a very specific entity. However, the global merchandise trade is becoming more and more liberalized internationally and the regional agricultural markets are still being affected by a significant protectionism. The individual countries and certain clusters of countries are applying an intensive agricultural market protection. The result of these policies is a distortion of the agricultural trade. This distortion is also affecting the individual countries mutual competitiveness. While one country could be competitive in relation to one partner, in relation to other partner, the competitiveness could be limited. The paper clarifies and analyses the differences that exist in the competitiveness of the Czech agrarian trade in relation to the above mentioned groups of countries. The analysis is conducted utilizing the symmetric revealed comparative advantage index and the Lafay index, the Trade Balance index and the product mapping. The Czech agrarian trade territorial structure has become more concentrated, the commodity structure became more diversified. Czech trade is quite competitive especially in relation to the European countries, the competitiveness in relation to other territories is limited. The significant weakness of the Czech agrarian trade is its low ability to generate added value.

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

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.

'An End to Cheap Labour' How a Public Campaign May Become a Turning Point for Czech Unions' Strength

The main Czech trade union confederation, the CMKOS, launched its campaign for 'An End to Cheap Labour' at a rally of 1500 trade unionists on 16 September 2015. The aim was to start closing the pay gap with Western Europe which, even after 25 years of transformation into a market economy and subsequent accession to the EU, left Czech wages about one third the level of richer countries of western Europe. It is not clear whether the campaign for 'An End to Cheap Labour' marks a complete turnaround in union fortunes, but it could mark an important first step in that direction. The following sections analyse the nature and effects of this campaign, starting with an overview of relevant aspects of the existing economic structure, followed by an assessment of the position of Czech trade unions at the time of its initiation based on the power resources approach. The results of the campaign, relating them to trade union power resources, are covered in subsequent sections.

Chování subjektů nezávislého maloobchodního trhu v procesu distribuce potravinářských výrobků

The paper deal with the actual situation on the Czech independent retail market. Multinational retail chains represent the thread to small and medium sized trade firms due to large range of products, stronger position in negotiations with suppliers and financial power. That is reason why others independent retailers have to co-operate together and obtain the same advantages. Nowadays the discuss among Czech wholesale stocks with their retail nets is in progress. This discussion is aimed to establishing the Czech trade strategic alliance (TSA CZ) as an instrument for increasing of competitive ability. That is necessary also for connection with some other foreign or global trade alliance. Present situation offers to collaborate with two trade systems. The first is CBA operating in nine countries of the Central and Eastern Europe and the second is MARKANT working mainly in Germany and Austria. It seems TSA CZ has to decide between two business concepts – east or west. During the decision making is important to re-cognize what is more sufficient not only for the Czech trade firms on independent market but also for the Czech customer because satisfaction his needs and wants should be the mission of all retailers.

Comparison of Approaches to Publication of Open Government Data in Two Czech Public Sector Bodies

This case study compares approaches to publication of Open Government Data in two Czech public sector bodies: the Czech Telecommunication Office (CTO) and the Czech Trade Inspection Authority (CTIA). The top-down approach applied by the CTO is compared to the bottom-up approach applied by the CTIA. Results achieved by these two public sector bodies are described and the case study is concluded with the lessons learned.

VÝKLADOVÁ PRAXE EVROPSKÉHO SOUDNÍHO DVORA PŘI POSUZOVÁNÍ KONFLIKTU OZNAČENÍ PŘIHLAŠOVANÉHO JAKO OCHRANNÁ ZNÁMKA SE STARŠÍM PRÁVEM JINÉ OSOBY

The article deals with the verification of the starting hypothesis of complementariness of the law of consumer protection and the law of intellectual property. In order to achieve that goal the author analyzes individual the Czech Trade Marks Act from the standpoint of protection of rights and interests of consumers.The article follows the categorical requirement of a public law rule, the Consumer Protection Act, which prohibits deceiving consumers and establishes that deceiving may also consist in offering products and services unjustified designated by misleading trade mark.The consumer is deceived most frequently when trade marks are used for designation of products and their promotion. The Trade Marks Act may be analyzed in relation to consumer protection first from the standpoint of consumer protection against trade marks misleading someone about the origin and quality of products and services designated by them. Then it is possible to examine the question whether requirements of a designation for being registered as a trade mark are at the same time those attributes of the trade mark which meet the declared intention of the lawmaker, i.e. that the trade mark should be a source of information for the consumer about the origin and quality of the product de­sig­na­ted by it.Especially, the article deals with an interpretation of the conception „Likelihood of Confusion“ as the fundamental conception while judging the conflict with elderly trademarks applying for the re­gi­stra­tion into the list of The Patent Office.A perception of an average consumer is a fundamental factor for a judgement of „Likelihood of Confusion“ as results from the decision practice of The Czech Patent Office, Czech courts and The European Court of Justice. This is proof of the conclusion that rules of the Trademark Law are rules of the Consumer protection Law.

Model of the co-operative trade alliance for independent retail networks in Czech Republic

The main objective of the contribution is proposal of the model of co-operative trade alliance for independent trade alliances with fast-moving consumer goods (FMCG) in Czech Republic. Reason of the choice of this topic is sustain of variety of retail formats in Czech market in connection with position small and medium sized trade firms in comparison with transnational trade chains. Independent trade firms face to much bigger competitors operating supermarkets and hypermarkets, namely not even in size of sales area, width and depth of the assortment but also in possibility of negotiation of more profitable trade conditions with their suppliers. Effort of these independent trade firms, which operate mostly just in local or maximally regional market, is then mutual co-operation in form of consumer co-operatives, associations, alliances and networks. These groupings then mainly through common trade negotiation and purchase get for much more advantageous delivery and payment conditions from their suppliers. Besides they can participate in mutual financing of using of promotion instruments. Partial aim of the paper is investigation of opinion and willingness of Czech trade alliances with FMCG to utilize the opportunity of mutual co-operation in common trade alliance. Next partial goal is identification of the factors affecting formation of joint co-operative grouping and its structure, eventually definition of entry conditions which should be fulfilled by individual members.The system approach will be used to realize the given objective. This approach appears as the most suitable in consideration of anticipated structure and character of supposed model. The result will be then proposal of model of mutual co-operation between individual trade alliances.

The impact of global trends on Czech trade in agrarian and foodstuff products

The Czech retail market has changed its structure and form during the last twenty years. The influence of two factors is especially significant. The first one is the growth of internationalization and the second one is market concentration growth. The significant opening process of the Czech economy, accompanied by the liberalization of the Czech market process, enabled the international retail companies to penetrate the national retail market. The most powerful European retail companies are now present in the Czech market. The available shopping area/cap is also one of the largest in Europe. Retail chains have taken a dominant position in the market, and because of their market power they are able to determine trade/contract conditions for domestic suppliers. Retail chains’ sales have been constantly growing. While in 2006 the value of sales was about 258.5 billion CZK, in 2008 it was about 312.2 billion CZK. The impact of the economic crisis on the Czech retail market has not been as stressful as it was abroad. In 2009, a slowdown of the Czech retail market was recorded, but the value of sales decreased by only 3 billion CZK (in comparison with 2008). The highest sales (59 billion CZK) were recorded by the Lidl & Schwarz-Gruppe, which is the owner of two dominant retail chains in the Czech retail market (Kaufland and Lidl). The main aim of the paper is to evaluate the selected aspects, which have been influencing the relationship between multinational companies (retail companies – supermarkets and hypermarkets) and local (Czech) suppliers of agrarian and foodstuff products (farmers and foodstuff companies). The paper analyses the problem of abuse of multinational companies’ significant market power in relation to their suppliers. Based on a pilot project, the efficiency of market force law, and its use in practice, are analysed. The main idea is to analyse the following problems: the impact of 30 days payment period for goods delivered, under cost prices required by retail companies, and the structure of fees and charges required by retail companies.

Czech trade integration over the last two decades

Development of international trade is (in our view) one of the greatest achievements of the transformation process in Eastern Europe. In the paper we illustrate this achievement by the example of the Czech Republic. We conclude that the economy has enormously changed from closed one with backward production and orientation towards the Eastern markets to one that is among the most open economies in the world, with nearly entire orientation towards the developed markets and with relatively advanced production. This development was partly a result of quick (and in our view brave) liberalization at the beginning of the transformation process. At the same time, we have to conclude that the level of dependency has enormously increased in the course of the respective period and the Czech economy is now highly dependent on the economic development of the main trading partners – foremost the other European countries. This dependency is largely positive but can bring negative aspects in the periods of economic decline.

The Impact of Exchange Rate Development on Czech Trade Flows

The aim of the paper is to investigate the impact of exchange rate development on bilateral trade flows between Czech Republic and its major trading partners. This paper explores J-curve pattern and relationship between exchange rate volatility and trade flows using quarterly data over the period 1997 – 2012. We employ a Johansen cointegration test to analyze the long run relationship. Short term effects are explored by estimating an error correction model and by assessing impulse-response functions. We reveal J-curve for trade with France and an inverse J-curve for Slovakia and United Kingdom. Volatility has no clear impact on trade flows.

Credit Support for Export: Robust Evidence from the Czech Republic

AbstractThe topic of this paper is quite a novel one – it is one of few empirical academic papers dealing with export credit. Moreover, it is the first analysis of this kind which focuses on transition economies. The paper deals with export credit promotion in the Czech Republic. The development and structure of Czech trade and export support is presented first, followed by an econometric analysis of the gravity model of Czech Republic trade. A panel of 160 countries in 1996–2008 is analysed and two gravity models of exports for the Czech Republic are estimated, the static model by fixed effects (LSDV estimator) and the dynamic model by System GMM. Due to ambiguous conclusions we assume that the behaviour of our explanatory variables is not uniform and our data set behaves as a mixture of countries with heterogeneous behaviour. This means that traditional techniques of estimation which include all observations into one model do not give significant results. Thus, we use robust techniques of estimation that solve the problem of heterogeneous patterns in data sets. Out of several possibilities we use the Least Trimmed Squares estimator (LTS) with a leverage point. We show that guarantees are a significant factor that influences positively the volume of exports in the Czech Republic. Moreover, there exist more variables that affect the size of exports in the Czech Republic. Market forces described by GDP, distance, political risk or gross fix capital formation are significant in our econometric model. We find that higher GDP, shorter distance or lower political risk have a positive impact on Czech exports.

Credit Support for Export: Evidence from the Czech Republic

This paper deals with export credit promotion in the Czech Republic. The development and structure of Czech trade and export support is presented first. This is followed by an econometric analysis of the gravity model of Czech trade. A panel of 160 countries in 1996-2008 is analyzed and two gravity models of exports for the Czech Republic are estimated, the static model by fixed effects (LSDV estimator) and the dynamic model by System GMM. Finally, robust LTS estimator is used. We show that guarantees are a significant factor that influences positively the volume of exports in the Czech Republic.

Gravitační a fiskální modely státní podpory exportních úvěrů v České republice

The article deals with the export credit promotion in the Czech Republic. The econometric analysis of the gravity model of Czech trade shows that the credit support provided by specialized government agency, Czech Export Bank, has a positive but statistically weak influence on export. The other determinants of the Czech export in our model are GDP, distance, gross fixed capital formation, and policy risk. The comparison of estimated tax revenues from the supported projects with government subsidies provided to the Czech Export Bank shows that export promotion does not create a financial burden for the government budget. The budgetary costs of export credit support are offset by the tax revenues generated by supported export.

Dual Discursive Patterns in Czech Activists’ Internet Media Communication

This article studies the internet media communication of 12 organizations representing Czech trade union, feminist, human rights and environmental movements. Drawing on Foucault’s concept that discourse has a formative influence resulting in a specific system of statement allocation, the study investigates the discursive characteristics of activists’ communication. The research is methodologically based on a quantitative exploration of co-occurrences of frequent lexical items. The computer-assisted text analysis reveals an important characteristic of the communication — an internal split in two discursive areas: on the one hand, the ‘conditions area’, dedicated to phrasing the existential conditions of subjects of contest or protection, and, on the other hand, the ‘contention area’, referring to strategies and negotiation with movement opponents. In the study’s interpretation, the discourse constrains activist organizations to communicate both about the life conditions of actors/subjects and about their claims and negotiations, but in large measure separately.

Procter & Gamble-Rakona uses traditional Czech trade marks

Procter & Gamble-Rakona uses traditional Czech trade marks

Interest politics and identity formation in postcommunist societies: The Czech and Slovak trade union movements

In this article we will explore how the Czech and Slovak trade union movements, 1 at both the leadership and grassroots levels, are seeking to reconstruct their collective identities in the post-communist era. This is an important phenomenon in its own right, but also one which has wider implications for the process of democratic consolidation in these two countries. Moreover, since these are the ECE labour movements which have gone furthest in carving out a distinct and signi® cant political role in the post-communist polity, we believe that their experience may also hold signi® cant lessons for the region as a whole.

Czech foreign trade in the nineties: adaptation to developed markets

The article deals with the problems of adaptation of Czech foreign trade to challenging markets of developed countries. It devotes special attention to the trade with the EU since the problems of adaptation, leading to growing trade deficits, were most profound in this territory. In the end of the nineties, the adaptation to developed markets proceeded rapidly, competitiveness of Czech exports quickly growing. Main Czech trading partners are treated separately in the third part of the article. Final part shows that reorientation of Czech foreign trade resulted in the creation of the new risky factors of Czech external balance. Regression analysis of foreign trade showed high dependence of Czech exports on West European, especially German, business cycle. High import intensity of Czech exports might thus cause the problems of external imbalance again, even under good export performance.

Czech foreign trade in the economic transition

This article describes the almost ten-years long history of Czech foreign trade in the broader context of economic transition. Dividing the history into two different parts (1991 - 1996 and since 1997 beyond) the paper tries to evaluate not only the results in the period mentioned, but also to assess the roots and causes, both external and internal. Besides shortcommings there were a number of positive achievments, expecially in the first period (rapid reorientation, stable terms of trade etc.) which, however, turned sour especially due to neglecting huge and rising trade balance deficits. The situation exploded by the spring time of 1997 and the measures taken (austrety "packages") have appeared only partially succesful so far. The world economy with its regional and financial turbulences and shakes of 1997/1999 made the situation even worse. Despite all negative factors the Czech trade balance improved partially in the period 1997 - 1999.

Czech Trade Unions in Comparative Perspective

This article covers the development of the Czech trade union movement after 1989. The emerging leadership aimed to emulate the most successful unions in western Europe. The transformation into a movement emphasizing collective bargaining was generally successful, but membership, bargaining coverage and ability to influence the government declined in the following years. Comparison with developments elsewhere in Europe suggests that this can be attributed to the specific political and economic environment and to the new union movement's origins. Strategic choices during the reconstitution of the trade union movement led to a structure that made it difficult to adapt to changing economic conditions.

Changes in trade of the czech republic with developing countries during the transformation period

Despite some inaccuracies originating chiefly in statistical discrepancies, the analysis has shown that the role of developing countries in foreign trade of the Czech Republic reveals a clearly downward trend. This is observable even in comparison with the prevailing trends characterizing trade relations between developing countries and transformation economies as a group. In view of the fact that developing countries including China and Vietnam have been the most dynamic segment of the world economy during the first half of the 1990s, this downward trend gives no reasons to satisfaction. Moreover, their trade has been growing at markedly rapid rates than GDP. In these circumstances, the falling share of developing countries in Czech exports and imports indicates that Czech trade tends to lose opportunities to grow.