Animal Husbandry Export Measures Productivity: What is the Position of the Czech Republic?

DOI 10.7160/aol.2020.120407
No 4/2020, December
pp. 93-110

Rumánková, L., Kuzmenko, E., Benešová, I., Smutka, L. and Laputková, A. (2020) “Animal Husbandry Export Measures Productivity: What is the Position of the Czech Republic?", AGRIS on-line Papers in Economics and Informatics, Vol. 12, No. 4, pp. 93-110. ISSN 1804-1930. DOI 10.7160/aol.2020.120407.

Abstract

Efficiency, productivity and competitiveness are important indicators of any production process. Speaking of agriculture and, in particular, animal husbandry in the light of sustainable development context, the values of these indicators become of special importance. Since adequate and efficient usage of disposable labour, land and capital can play a crucial role in obtaining and preserving higher efficiency and productivity levels, the natural question arises - does any relationship exist between mentioned production factors and revealed comparative advantage? The main aim of this research is to evaluate the relationship between export-measured productivity and comparative advantages in animal husbandry of selected European countries. The benchmark is provided in relation to the Czech Republic. To analyse productivity of agricultural and, more specifically, animal production in the European countries selected for the analysis (based on available balanced data incorporating the period from 2005 to 2017), a decision was made to trace export performance of these countries recalculated with regard to a unit of core productive factors, such as land, labour and capital. Based on the foreign trade indicators (Gruber Lloyd index, RCA index), cluster analysis was conducted, in which individual calculation was used as an input variable. Subsequently, hierarchical clustering and Ward´s method were used. The evidence from this study suggests that the revealed comparative advantage of the countries is not determined primarily by the level of export-based productivity. The relationship between these variables is rather weak and very often negative, which indicates that productivity indicators do not play a significant role in the overall competitiveness of the monitored countries.

Keywords

Productivity, competitiveness, comparative advantage, animal husbandry, export, European Union, Czech Republic, benchmark, selected countries.

References

  1. Abizadeh, S. and Pandey, M. (2009) "Trade Openness, Structural Change and Total Factor Productivity", International Economic Journal, Vol. 23, No. 4, pp. 545–559. E-ISSN 1743-517X, ISSN 1016-8737. DOI 10.1080/10168730903372273.
  2. Berthou, A., Dhyne, E., Bugamelli, M., Cazacu, A, Demian, V., Harasztosi, P., Lalinsky, T. Meriküll, J., Oropallo, F. and Soares, A. C. (2015) "Assessing European Firms' Exports and Productivity Distributions: The CompNet Trade Module", ECB Working Paper No. 1788. [Online]. Available: https://ssrn.com/abstract=2621440. [Accessed: Oct. 20, 2020].
  3. Bojnec, Š. and Fertö, I. (2014) "Meat Export Competitiveness of European Union on Global Markets", Agricultural and Food Science, Vol. 23, No. 3. ISSN 1795-1895. DOI 10.23986/afsci.9373.
  4. Bojnec, Š. and Fertö, I. (2015) "Agri-food export Competitiveness in European Union Countries", Journal of Common Market Studies, Vol. 53, No. 3, pp. 476-492. ISSN 1468-5965. DOI 10.1111/jcms.12215.
  5. Buja, A. and Swayne, D. F. (2002) "Visualization Methodology for Multidimensional Scaling", Journal of Classification, Vol. 19, No. 1, pp. 7-43. E-ISSN 1432-1343, ISSN 0176-4268. DOI 10.1007/s00357-001-0031-0.
  6. Burianová, J. (2010) "Trends of the Agrarian Foreign Trade of CR after Accession to EU, Competitiveness of Commodities", AGRIS on-line Papers in Economics and Informatics, Vol. 12, No. 3. ISSN 1804-1930.
  7. Carraresi, L. and Banterle, A. (2008) "Measuring Competitiveness in the EU market: a Comparison between Food Industry and Agriculture", Proceedings of EAAE 2008 International Congress, Ghent. DOI 10.22004/ag.econ.43692.
  8. Ciaian, P., Pokrivcak, J. and Drabik, D. (2009) "Post-Communist Economies Transaction costs, product specialisation and farm structure in Central and Eastern Europe", Post-Communist Economies, Vol. 21, No. 2, pp. 191-201. E-ISSN 1465-3958, ISSN 1463-1377. DOI 10.1080/14631370902778526.
  9. Csikósová, A., Čulková, K. and Janošová, M. (2018) "Work Productivity and Employment in chosen EU Countries", Proceedings of 8th Business and Managements Conference, Venice. ISBN 978-80-87927-73-1. DOI 10.20472/BMC.2018.008.002.
  10. Čechura, L., Žáková Kroupová Z. and Hockmann, H. (2015) “Market Power in the European Dairy Industry”, AGRIS on-line Papers in Economics and Informatics, Vol. 7, No. 4, pp. 39-47. ISSN 1804-1930. DOI 10.7160/aol.2015.070404.
  11. Fertö, I. and Hubbard, L. J. (2003) "Revealed Comparative Advantage and competitiveness in Hungarian Agri-food Sectors", The World Economy, Vol. 26, No. 2. ISSN 1467-9701. DOI 10.1111/1467-9701.00520.
  12. Fojtíková, L. and Staníčková, M. (2017) "Konkurenceschopnost a produktivita vývozu členských zemí Evropské unie", Politická ekonomie, Vol. 65, No. 6, pp. 669-689. ISSN 2336-8225. DOI 10.18267/j.polek.1169.
  13. Galović, T., Mišević, P. and Popović, L.(2017) "The Export Competitiveness of the EU 28 Countries", Trade Perspectives 2017, University of Zagreb - Faculty of Economics and Business, Croatian Chamber of Economy. ISBN 978-953-346-048-2.
  14. Gorton, M., Davidova, S. and Ratinger, T. (2000) "The Competitiveness of Agriculture in Bulgaria and the Czech Republic Vis-à-Vis the European Union (CEEC and EU Agricultural Competitiveness)", Comparative Economic Studies, Vol. 42, No. 1. ISSN 1478-3320. DOI 10.1057/ces.2000.2.
  15. Grubel, H. G. and Lloyd, P. J. (1971) "The Empirical Measurement of Intra-Industry Trade", Economic Record, Vol. 47, No. 4, pp. 494-517. E-ISSN 1475-4932. DOI 10.1111/j.1475-4932.1971.tb00772.x.
  16. Iapadre, P. L. (2001) "Measuring international specialization", International Advances in Economic Research, Vol. 7, No. 2, pp. 173-183. E-ISSN 1573-966X, ISSN 1083-0898. DOI 10.1007/BF02296007.
  17. Kharin, S. (2019) “Horizontal Price Transmission on the Russian Dairy Market: Nonlinear Approach", AGRIS on-line Papers in Economics and Informatics, Vol. 11, No. 3, pp. 45-54. ISSN 1804-1930. DOI 10.7160/aol.2019.110305.
  18. Kijek, A., Kijek, T., Nowak, A. and Skrzypek, A. (2019) "Productivity and its convergence in agriculture in new and old European Union member states", Agricultural Economics, Vol. 65, No. 1, Vol. 01-09. E-ISSN 1805-9295, ISSN 0139-570X. DOI 10.17221/262/2017-AGRICECON.
  19. Lafay, J. (1992) "The Measurement of Revealed Comparative Advantages", In M. G. Dagenaisand, P. A. Muet (Eds.) "International Trade Modeling", pp. 209-234, London, United Kingdom: Chapman and Hall.
  20. Latruffe, L. (2010) "Competitiveness, Productivity and Efficiency in the Agricultural and Agri-Food Sectors", OECD Food, Agriculture and Fisheries Papers, No. 30, OECD Publishing, Paris. E-ISSN 18156797. DOI 10.1787/5km91nkdt6d6-en.
  21. Laursen, K. (2015) "Revealed comparative advantage and the alternatives as measures of international specialization", Eurasian Bussines Review, Vol. 5, No. 1, pp. 99-115. E-ISSN 2147-4281. DOI 10.1007/s40821-015-0017-1.
  22. Mizik, T., Gál, P. and Török, Á. (2020) “Does Agricultural Trade Competitiveness Matter? The Case of the CIS Countries", AGRIS on-line Papers in Economics and Informatics, Vol. 12, No. 1, pp. 61-72. ISSN 1804-1930. DOI 10.7160/aol.2020.120106.
  23. Nagy, J. and Jámbor, Z. (2019) “Competitiveness in Dairy Trade – the Case of EU and the Visegrad Group Countries", AGRIS on-line Papers in Economics and Informatics, Vol. 11, No. 4, pp. 61-74. ISSN 1804-1930. DOI 10.7160/aol.2019.110406.
  24. Nowak, A. and Kaminska, A. (2016) "Agricultural competitiveness: The Case of the European Union Countries", Agriculture Economics – Czech, Vol. 62, No. 11, pp. 507-516. E-ISSN 1805-9295, ISSN 0139-570X. DOI 10.17221/133/2015-AGRICECON.
  25. Pokrivčák, J., Záhorský, T. and Svetlanská, T. (2015) "Evaluation of Technical Efficiency and Productivity of Agriculture in EU Member States", Proceedings of 10th International Conference on Applied Business Research. [Online]. Available: http://www.icabr.com/fullpapers/icabr2015.pdf. [Accessed: Sept. 14, 2020].
  26. Qineti, A., Rajcaniova, M. and Matejkova, E. (2009) "The competitiveness and comparative advantage of the Slovak and the EU agri-food trade with Russia and Ukraine", Agriculture Economics – Czech, Vol. 55, No. 8, pp. 375-383. E-ISSN 1805-9295, ISSN 0139-570X. DOI 10.17221/42/2009-AGRICECON.
  27. Rozkošová, A. and Megyesiová, S. (2017) "Labour Productivity of EU Member States in Selected Setions of Economy", Proceedings of 11th International Days of Statistics and Economics, Prague. [Online]. Available: https://msed.vse.cz/msed_2017/article/255-Rozkosova-Anna-paper.pdf. [Accessed: Oct. 15, 2020].
  28. Rungsutiyawiboon,S. and Lissitsa, A. (2007) "Agricultural Productivity Growth in the European Union and Transition Countries", In Fuller, F. H. and Beghin, J. C. "European Agriculture – Enlargement, Structural Change, CAP Reform, and Trade Liberalization", Nova Science Publishers. ISBN 978-1-60021-966-5.
  29. Ružeková, V., Kittová, Z. and Steinhauser, D. (2020) "Export Performance as a Measurement of Competitiveness", Journal of Competitiveness, Vol. 12, No. 1, pp. 145-160. E-ISSN 1804-1728. ISSN 1804-171X. DOI 10.7441/joc.2020.01.09.
  30. Serrao, A. (2003a) "A comparison of Agricultural Productivity among European Countries", New Medit, Vol. 2, No. 1, pp. 14-20. ISSN 15945685.
  31. Serrao, A. (2003b) "Agricultural Productivity Analysis of European Union and Eastern Regions", AAEA – 2003 Annual Meeting, Montreal, Canada. 20 p. DOI 10.22004/ag.econ.22167.
  32. Sunge, R. and Ngepah, N. (2020) "The Impact of Agricultural Trade Liberalization on Agricultural Total Factor Productivity Growth in Africa", International Economic Journal, Vol. 34, No. 4, pp. 571-598. E- ISSN 1743-517X, ISSN 1016-8737. DOI 10.1080/10168737.2020.1836671.
  33. Tiffin, A. (2014) "European Productivity, Innovation and Competitiveness: the Case of Italy", IMF Working Papers. ISBN 9781484379868. DOI 10.5089/9781484379868.001.
  34. Tong Soo, K. (2013) "The Gains from External Scale Economies and Comparative Advantage" Economics Bulletin, AccessEcon, Vol. 34, No. 1, pp. 84-88.
  35. Torgerson, W. S. (1952) "Multidimensional scaling: I. Theory and method", Psychometrika, Vol. 17, No. 4, pp. 401-419. E-ISSN 1860-0980, ISSN 0033-3123. DOI 10.1007/BF02288916.
  36. Ward, J. H. J. (1963) "Hierarchical Grouping to Optimize an Objective Function", Journal of American Statistical Association, Vol. 58, No. 301, pp. 236-244. DOI 10.1080/01621459.1963.10500845.
  37. Wulong, G. and Beiling, Y. (2017) “Productivity Growth and International Competitiveness”, Review of Income and Wealth, No. 63, Vol. 1. ISSN 1475-4991. DOI 10.1111/roiw.12254.

Full paper

  Full paper (.pdf, 505.19 KB).