Changes in Foreign Trade in Agri-Food Products Between the EU and China


Abstract

The aim of the paper was to identify the changes in bilateral trade in agri-food products between the EU and China, as well as to assess - in mutual relations - ex post competitive advantages of major groups of agri-food products in 2008- 2015. The research is based on data from the Statistical Offi ce of the European Union (Eurostat). The analysis covered the value, trade balance, shares in total trade and commodity structure of trade in agri-food products between the EU and China. Selected indices of revealed comparative advantage (XRCA, MRCA, RTA), Coverage Ratios (CR), Specialization Indicators (SI), and the indices of Intra-Industry Trade (IIT) were calculated for major product groups of the Combined Nomenclature. It was proved that bilateral trade in agri-food products between the EU and China has increased signifi cantly in 2008-2015, and the EU transformed from an importer to a net exporter. Despite the intensifi cation of mutual trade, the importance of China in the EU export of agri-food products remained relatively small. The structure of bilateral trade in agri-food products between the EU and China is consistent with the distribution of comparative advantages obtained by exporters and it is shaped under assumptions of the theory of similarity of preferences, the theory of product diff erentiation of the Armington type, and the Heckscher-Ohlin-Samuelson theorem of resources abundance. It can be considered that the Chinese agri-food sector is still in the stage of a factor-driven economy, while the agriculture and food industry in the EU countries has reached the stage of an innovation-driven economy.

Keywords

Agri-food industry; Foreign trade; Comparative benefits

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Published : 2016-12-31


Pawlak, K., Kołodziejczak, M., & Xie, Y. (2016). Changes in Foreign Trade in Agri-Food Products Between the EU and China. Journal of Agribusiness and Rural Development, 42(4), 607-618. https://doi.org/10.17306/JARD.2016.87

Karolina Pawlak  pawlak@up.poznan.pl
Uniwersytet Przyrodniczy w Poznaniu  Poland
Małgorzata Kołodziejczak 
Uniwersytet Przyrodniczy w Poznaniu  Poland
Yumei Xie 
Jiangnan University  China


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