SABIIA - Sistema Aberto e Integrado de Informação em Agricultura (Sabiia)

Bakucs, Lajos Zoltan; Bojnec, Stefan; Ferto, Imre.

The paper focus on the time adjustment paths of the exchange rate and agricultural producer and industrial prices in response to unanticipated monetary shocks following model developed by Saghaian et al. (2002). Results indicate that agricultural prices adjust faster than industrial prices to innovations in the money supply, affecting relative prices in the short run, but strict long-run money neutrality does not hold. The impulse response analysis shows that an exogenous shock to the money supply has a significant and volatile effect on the three price variables. The extent of overshooting in agricultural prices is twice as large as for exchange rates or industrial prices. This indicates that in the case of monetary shocks the sectors associated with...

Impact of Off-farm Income on Farm Efficiency in Slovenia

Palavras-chave: Agricultural prices; Exchange rates; Monetary shocks; Overshooting; Transition economy; Agricultural Finance; International Relations/Trade.

Ano: 2007

URL: http://purl.umn.edu/9422

Impact of Off-farm Income on Farm Efficiency in Slovenia

Determinants of competition in agro-food trade between Central European Countries and the European Union

Palavras-chave: Off-farm income; Stochastic frontier analysis; Panel regression; Quantile regression; Slovenia; Agricultural Finance; Farm Management.

Ano: 2011

URL: http://purl.umn.edu/114258

This paper investigates determinants of competition in agro-food trade between five transition Central European Countries (CEC-5) (Czech Republic, Hungary, Poland, Slovakia, and Slovenia) and the European Union (EU-15) countries during the preenlargement years 1995-2003. We distinguish between one-way exports and imports, and two-way successful and unsuccessful price and quality competition in agro-food trade between the CEC-5 and the EU-15. The effect of trade balance on trade competition is found more significant than the effect of export-import unit values difference. Natural and human factor endowments increase price competition and reduce unsuccessful quality competition. Higher level of economic development reduces quality competition, whereas the...

Price transmission in the Hungarian vegetable sector

Palavras-chave: Competition categories; Determinants; Agro-food trade; Central and Eastern Europe; European Union.; International Relations/Trade.

Ano: 2007

URL: http://purl.umn.edu/7779

Bakucs, Lajos Zoltan; Ferto, Imre; Szabo, Gabor G..

In this paper we analyse price transmission for the carrot, parsley, tomato, green pepper and potato markets. Although there is a dual farm structure dominated by small individual farms, our results imply that price information flows from the producer to the retail level for potatoes, parsley and carrots. Our results also suggest that farmers do not merely accept prices, but can actually influence market prices. Tomato and green pepper prices have large transmission elasticities, and causality runs from the retail to producer level. It therefore follows that tomato and green pepper producers tend to accept prices and that the sector’s prices are determined by upper market levels (processors, wholesalers, retailers). These results are reinforced by the fact...

Tipo: Journal Article

Palavras-chave: Hungarian vegetable sector; Producer prices; Price transmission; Demand and Price Analysis; Crop Production/Industries.

Ano: 2007

URL: http://purl.umn.edu/47013

Comparative advantages and competitiveness of Hungarian and Slovenian agro-food trade in the EU markets

The paper investigates comparative advantages and competitiveness of Hungarian and Slovenian agro- food trade in the EU markets. Applying a highly disaggregated trade dataset, we describe the pattern of agro- food trade in Hungary and Slovenia using the Balassa index. The extent of trade specialization exhibits a declining trend. Both countries have lost comparative advantage for a number of product groups over time. The indices of specialization have tended to converge. For particular product groups, the indices display greater variation. They are stable for product groups with comparative disadvantage, but product groups with weak to strong comparative advantage show significant variation. The price competition, quality competition and the one- way trade...

Intra-Industry Trade in Horizontally and Vertically Differentiated Agri-Food Products between Hungary and the EU

Palavras-chave: Comparative Advantage; Price Competition; Agro- Food Trade.; International Relations/Trade.

Ano: 2006

URL: http://purl.umn.edu/10069

Ferto, Imre; Hubbard, Lionel J..

Intra-industry trade in agri-food products between Hungary and the EU is shown to be low and dominated by vertically rather than horizontally differentiated products, suggesting higher economic adjustment costs. Following recent empirical studies, we then test econometrically for the determinants of this trade using different measures of horizontal and vertical trade, and employing an array of popular explanatory variables. Results suggest that separating the measure of intra-industry trade into vertical and horizontal provides for better estimation and supports the contention that the determinants may differ by type of trade. In the regression analysis, the level of intra-industry trade is found to serve as a better dependent variable than the degree or...

IDENTIFICATION OF MARKET POWER IN THE HUNGARIAN DAIRY INDUSTRY: A PLANT-LEVEL ANALYSIS

Palavras-chave: Intra-industry trade; Product differentiation; Hungary; International Relations/Trade.

Ano: 2002

URL: http://purl.umn.edu/24884

Perekhozhuk, Oleksandr; Hockmann, Heinrich; Bakucs, Lajos Zoltan; Ferto, Imre.

The objective of this paper is to provide an alternative model which can be used to test for oligopsony market power applying plant-level data. For this purpose, we took into account empirical studies and specific developments in the Hungarian dairy industry and specified a model that provides useful benchmarks for an econometric test of market power. The results of the econometric analysis show that the effects from policy changes in Hungary, as well as from plant specific issues are highly statistically significant, and produce evidence suggesting the exercise of oligopsony market power in the Hungarian dairy industry.

COMPARATIVE ADVANTAGES IN AGRO-FOOD TRADE OF HUNGARY, CROATIA AND SLOVENIA WITH THE EUROPEAN UNION

Palavras-chave: Livestock Production/Industries; Marketing.

Ano: 2011

URL: http://purl.umn.edu/114768

Investment and Financial Constraints in European Agriculture: Evidence from France, Hungary and Slovenia

This paper investigates comparative trade advantages in agro-food trade. We analyze comparative advantages of Hungarian, Croatian and Slovenian agro-food trade in the European Union (EU) markets. Both the levels and pattern of the revealed comparative advantage measure are investigated. The empirical research seeks to explain how revealed comparative advantages have developed across countries, main product groups and over time and what are likely their implications for multifunctional rural development in the enlarged EU. We employ a disaggregated trade dataset to identify the revealed comparative advantages to provide broader policy implications. The empirical results confirmed bulk of agro-food and forestry products with revealed comparative advantages...

Tipo: Working or Discussion Paper

Palavras-chave: Comparative advantage; Croatia; Hungary; Slovenia.; Agribusiness; Community/Rural/Urban Development; Food Consumption/Nutrition/Food Safety; International Relations/Trade; Marketing; Political Economy; Production Economics; F14; Q17.

Ano: 2007

URL: http://purl.umn.edu/90870

Ferto, Imre; Bakucs, Lajos Zoltan; Bojnec, Stefan; Latruffe, Laure.

The article investigates the investment and financial constraints for French, Hungarian and Slovenian farms using FADN panel data with different econometric estimation approaches. Farm gross investment is positively associated with real sales growth and cash flow implying the absence of soft budget constraint. Gross farm investment is positively associated with investment subsidies. Specific results by country are found depending on farm indebtedness. Investment subsidies can mitigate some capital market imperfections in short-term, while on long-term what is crucial is farm sale ability to successfully compete in the output market gaining sufficient cash flow for farm competitive survival and investment.

Market power: Modeling issues and identification problems. An investigation of selected Hungarian food chains

Palavras-chave: Farm investment; Soft budget constraint; Investment subsidy; Panel data analysis; Agricultural Finance; D81; D92; O12; Q12; C23.

Ano: 2011

URL: http://purl.umn.edu/114357

Bakucs, Lajos Zoltan; Ferto, Imre; Hockmann, Heinrich; Perekhozhuk, Oleksandr.

In recent years increasing number of contractual arrangements in food chains are observed. There are several reasons for this phenomenon. Improving food quality often requires significant specific investments. Given high asset specificity, investors find it difficult to appropriate the returns on investment and thus have incentives to integrate. However, besides this transaction costs related argument, the ongoing vertical integration can result from structural developments in food chains which at different stages of the value chains, might hamper the proper functioning of markets. Using a unique, firm level dataset, in this paper we will focus on the latter issue. Due to its importance among various Hungarian value chains, we have selected the milk...

THE CHOICE BETWEEN CONVENTIONAL AND ORGANIC FARMING – A HUNGARIAN EXAMPLE

Palavras-chave: Market power; Hungarian food chains.; Food Consumption/Nutrition/Food Safety.

Ano: 2009

URL: http://purl.umn.edu/57977

Ferto, Imre; Forgacs, Csaba.

The organic agriculture represents a promising alternative for the future of European agriculture. It is consistent with the notion of sustainable development set forth already in the 1992 CAP Reform. Despite of increasing importance of organic farming, the research on organic farming is still limited. This scarcity of the research is especially true for New Member States of the enlarged EU. This paper investigates the choice between conventional and organic production technologies for individual farmers in Hungarian agriculture. We apply a model that explicitly accounts for the effects of farm-specific variables like age and education on the expectations farmers have on the utility of both production technologies. In addition we take into account the...

The Impact of Crop Insurance on the Economic Performance of Hungarian Cropping Farms

Palavras-chave: Innovation; Attitudes; Organic production; Diffusion; Agribusiness; Crop Production/Industries; Food Consumption/Nutrition/Food Safety.

Ano: 2009

URL: http://purl.umn.edu/57488

Sporri, Martina; Baráth, Lajos; Bokusheva, Raushan; Ferto, Imre.

Crop insurance products can improve and stabilize economic performance. However, due to insurance market imperfections, the use of insurance products often requires governmental support. This paper analyses the actual impact of insurance products on the economic performance of cropping farms by linking the economic performance model with the insurance demand model. For this analysis, a simultaneous equation system is solved. Our estimations show a negative impact of insurance on the economic performance indicators farm profit, labour productivity and land productivity. The analysis of the insurance demand side confirms financial limitations of many farms.

Tipo: Presentation

Palavras-chave: Hungary; Crop Insurance; 2SCML; Impact evaluation; Risk and Uncertainty; Q12; Q14; G22.

Ano: 2012

URL: http://purl.umn.edu/122525

Market-Creating Effect of the Internet on Food Trade

This paper analyses the impact of the number of the Internet users on food industry trade between developed OECD countries using both panel and cross-sectional data. We find the positive, significant and over time increasing effect of the Internet on food industry exports confirming that the Internet reduces market-specific entry costs for food industry exports. The significant positive effect pertained to the Internet is found in the importing countries. The significant positive effects on food industry exports are found for the country’s economic size and bilateral common features and proximities. The Internet mitigates the countries proximities, but increased the distance between the countries.

Institutions, Policy Reforms and Efficiency in New Member States from Central and Eastern Europe

Palavras-chave: Internet; Distance; International trade; OECD countries; International Development.

Ano: 2010

URL: http://purl.umn.edu/91958

Bojnec, Stefan; Ferto, Imre; Jambor, Attila; Toth, Jozsef.

This paper investigates determinants of agricultural sector efficiency in ten new member states (NMS-10) of the European Union (EU) from Central and Eastern European countries by the non-parametric method Data Envelopment Analysis (DEA) and the panel data analysis. The agricultural sector efficiency varies between the NMS-10. We have found positive and significant association of the agricultural sector efficiency with the natural agricultural factor endowments, average farm size, farm specialization, small-scale farms, and the EU integration process. The foreign direct investments have an ambiguous affect, while the nominal assistance rate is not found significant. Reform and institutional developments and liberalization are associated with the...

On Trade Impact of Exchange Rate Volatility and Institutional Quality: The Case of Central European Countries

Palavras-chave: Agricultural efficiency; Institutions; Policy reforms; Agricultural and Food Policy; Institutional and Behavioral Economics; Political Economy; C14; C23; Q12.

Ano: 2010

URL: http://purl.umn.edu/91032

Ferto, Imre; Fogarasi, Jozsef.

This paper explores the effect of exchange rate volatility and of the institutional quality on international trade flows of transition economies in Central European Countries by applying a gravity model of balance panel between 1999 and 2008. The results show that nominal exchange rate volatility has had a significant negative effect on trade by applying Psuedo-Maximum-Likelihood (PML) estimator method over this period. The institutional quality need to be improved in case of size of government and the quality of regulation. The negative effect of exchange rate volatility on agricultural exports suggests that joining Central European Countries to the euro zone can reduce the negative effects of exchange rate volatility on trade.

Tipo: Presentation

Palavras-chave: International trade; Gravity model; Exchange rate volatility; Institutions.; International Relations/Trade; Risk and Uncertainty; G10; F11; O17; Q17; P29.

Ano: 2012

URL: http://purl.umn.edu/122510

Impact of Off-farm Income on Farm Efficiency in Slovenia

The paper investigates the impact of off-farm income on farm technical efficiency for the Slovenian Farm Accountancy Data Network farms in the years 2004-2008. Farm stochastic frontier time-varying decay inefficiency is positively associated with total utilised agricultural areas and total labour input, and vice versa with intermediate consumption and fixed assets. We find a positive association between farm technical efficiency and the off-farm income. Farm technical efficiency has increased steadily over time, the process, which was led by the off-farm spill over effect and most efficient farms. Farm technical efficiency is also positively associated with economic farm size, while association with subsidies is mixed depending on the estimation procedure....

Patterns and Determinants of Agro-Food Trade of the BRIC Countries: The Role of Institution

Palavras-chave: Off-farm income; Stochastic frontier analysis; Panel regression; Quantile regression; Slovenia; Farm Management.

Ano: 2011

URL: http://purl.umn.edu/108945

Bojnec, Stefan; Ferto, Imre; Fogarasi, Jozsef.

Agro-food trade between the BRIC countries has increased. Brazil and China contributed to the rapid increase of agro-food trade. The Russian Federation experienced the stagnating and the most volatile agro-food trade over time. The composition of agro-food trade for the BRIC countries varies by the BEC agro-food trade categories and over time. The prevailing in the composition of agro-food trade are BEC122 and BEC111 for Brazil and the Russian Federation, and BEC122 and BEC112 for India and China. Brazil and India have strengthened their market shares in agro-food trade between the BRIC countries, while the Russian Federation has experienced the most severe deterioration. The number and the share of trading partners that have traded every year vary between...

Monetary Impacts and Overshooting of Agricultural Prices in a Transition Economy: The Case of Slovenia

Palavras-chave: Agro-food trade; BRIC countries; Adapted gravity model; Institutions; Agribusiness; F14; Q17; C23; O57.

Ano: 2011

URL: http://purl.umn.edu/115529

Bakucs, Lajos Zoltan; Bojnec, Stefan; Ferto, Imre.

The paper focus on the time adjustment paths of the exchange rate and agricultural producer and industrial prices in response to unanticipated monetary shocks following model developed by Saghaian et al. (2002). We employ Johansen's cointegration test along with a vector error correction model to investigate whether agricultural producer prices overshoot in a transition economy. Results indicate that agricultural prices adjust faster than industrial prices to innovations in the money supply, affecting relative prices in the short run, but strict long-run money neutrality does not hold. The impulse response analysis shows that an exogenous shock to the money supply has a significant and volatile effect on the three price variables. Initially, both the...

Communication Costs and Agro-Food Trade in OECD Countries

Palavras-chave: Agricultural prices; Exchange rates; Monetary shocks; Overshooting; Transition economy; Financial Economics; C32; E51; P22; Q11.

Ano: 2006

URL: http://purl.umn.edu/25515

The paper analyses the effects of communication costs for agro-food trade in OECD countries between 1995 and 2003 using gravity model. We find that the link between the communication costs and agro-food trade flows in developed countries is significantly stronger for agricultural than for food products. The improved communication services reduce trade transaction costs. The estimations also confirmed importance of the economy size, level of development in importer countries, and trade distance. The other traditional gravity variables like contiguity, language and regional free trade agreements have significant impacts in the majority of specifications

The patterns of retail price variation. The case of milk products

Palavras-chave: Communication costs; Agro-food trade; Gravity model; International Relations/Trade; F14; F23; Q17.

Ano: 2009

URL: http://purl.umn.edu/50937

Ferto, Imre; Bakucs, Lajos Zoltan.

We examine retail price variation across a range of milk products in Hungary. Our results show that majority of products have regular prices and the most deviations from that regular price are upward. We find significant differences across products in terms of price distributions. Sales are infrequent for majority of products and its role is limited in annual price variation. Results do not confirm that durable goods should have qualitatively different pricing pattern than less-durable goods. Although existing models of retail sales yield predictions consistent with some aspects of the retail pricing distributions, all of these models fail to explain other important aspects of retail pricing identified here.