Summary
Countries from Central and Eastern Europe (CEE) that joined the European Union (EU) since May 2004 have recorded rapid increases in their agri‐food exports. While this increase in ...participation in international trade has been global, the CEE‐11 countries have mainly targeted the EU market. Poland, Hungary, Czechia and Romania are among those countries that have increased their agri‐food exports the most. We find that many CEE‐11 countries, especially Czechia and the Slovak Republic, Estonia, Hungary and Poland, have achieved their export expansion along the intensive margin, i.e. the expansion of average exports per existing product with existing trade partners. The extensive margin, i.e. an increase in the number of exported products with existing and new trade partners, along with a degree of product diversification in established markets was important for Lithuania, Romania and Estonia. We also note that in order to further benefit from an increased participation in trade, CEE countries need to switch from predominantly exporting traditional products towards penetrating more innovative product segments, along with new varieties of established products; and thus base their export expansion to a larger extent on the extensive margin.
Les pays d'Europe centrale et orientale (PECO) qui ont rejoint l'Union européenne (UE) depuis mai 2004 ont enregistré une augmentation rapide de leurs exportations agroalimentaires. Bien que cette participation accrue au commerce international ait été mondiale, les 11 PECO ont principalement ciblé le marché de l'UE. La Pologne, la Hongrie, la République tchèque et la Roumanie sont parmi les pays qui ont le plus augmenté leurs exportations agroalimentaires. Nous constatons que dans nombre des 11 PECO, en particulier les Républiques tchèque et slovaque, l'Estonie, la Hongrie et la Pologne, les exportations ont augmenté le long de la marge intensive, c'est‐à‐dire par une hausse des exportations moyennes pour chaque produit déjà échangé avec des partenaires commerciaux existants. La marge extensive, c'est‐à‐dire une augmentation du nombre de produits exportés avec des partenaires commerciaux existants et nouveaux, ainsi qu'une certaine diversification des produits sur les marchés établis, ont été importantes pour la Lituanie, la Roumanie et l'Estonie. Nous notons également que pour bénéficier davantage d'une participation accrue au commerce, les PECO doivent passer d’exportateurs prédominants de produits traditionnels à nouveaux participants à des segments de produits plus innovants, ainsi que de nouvelles variétés de produits établis. Ainsi, ils fonderaient davantage l’expansion de leurs exportations sur la marge extensive.
Die Länder Mittel‐ und Osteuropas (MOEL), die der Europäischen Union (EU) seit Mai 2004 beigetreten sind, haben einen rasanten Anstieg ihrer Agrar‐ und Lebensmittelexporte verzeichnet. Während die Teilnahme am internationalen Handel weltweit zugenommen hat, haben sich die MOEL‐11 hauptsächlich auf den EU‐Markt konzentriert. Polen, Ungarn, die Tschechische Republik und Rumänien gehören zu den Ländern, die ihre Agrar‐ und Lebensmittelexporte am stärksten steigern konnten. Wir stellen fest, dass viele MOEL‐11, insbesondere die Tschechische und die Slowakische Republik, Estland, Ungarn und Polen, ihr Exportwachstum durch die Ausweitung der durchschnittlichen Exporte pro bestehendem Produkt mit bestehenden Handelspartnern erreicht haben („intensive Marge“). Für Litauen, Rumänien und Estland war hingegen die „extensive Marge“ von Bedeutung: Hierbei wurde die Anzahl der exportierten Produkte mit bestehenden und neuen Handelspartnern in Verbindung mit einem gewissen Grad an Produktdiversifizierung in bereits etablierten Märkten ausgeweitet. Wir stellen außerdem fest, dass die MOEL von der Ausfuhr vorrangig traditioneller Produkte auf die Erschließung innovativerer Produktsegmente umschwenken müssen. Nur so können sie weiterhin von einer verstärkten Teilnahme am Handel profitieren. Die MOEL sollten darüber hinaus die Produktvielfalt der bestehenden Produkte erhöhen, um eine Ausweitung ihrer Exporte in größerem Umfang auf die extensive Marge zu stützen.
This paper analyses the forestry industry trade of the New Member States (NMS-11) of the European Union (EU) on the enlarged EU-27 markets, focusing on three groups of wood products: raw wood, ...semi-finished and finished wood products in the 1999–2010 period. The best performing NMS-11 country in the forestry industry trade with the enlarged EU-27 is Cyprus with a trade surplus mostly based on finished or at least semi-finished wood products. The results suggest a convergence in the forestry industry trade specialisation of the NMS-11 countries. A significant variation in the mobility of the forestry industry trade specialisation is found, but with a deterioration in forestry industry trade specialisation patterns over time. The results suggest the crucial role that the wood-processing and furniture industries can play with finished wood products and their backward linkages to raw wood and semi-finished wood products for forestry industry competitiveness. Forestry industry management should focus on better quality and greater trade competitiveness in the vertical wood industry supply chains from lower to higher value-added and marketed wood products.
•Relative comparative trade advantage index as a competitiveness measure•Kaplan–Meier survival rates and Markov transition probability matrices differ.•Degree of wood processing affects wood chain international competitiveness.•Finished wood products are crucial for competitive forestry industry trade.•More efficient wood chain management is a challenge for new member states.
The enlargement of the European Union (EU) led to an increase in regional development differences, challenging the EU structural policy. Whilst there are numerous papers discussing international and ...cross-EU development convergence, the issue seems under-researched at national level, especially when small territorial units are considered. This paper aims to partially fill this gap by using low aggregation (Local Administrative Unit 1, LAU1) territorial data between 2002 and 2013 a period that comprises Hungary’s EU accession and also the years of the recent Global Financial Crisis. We employ a novel approach to circumvent the lack of income, productivity or competitiveness data at LAU1 level by deriving two Regional Development Indices (RDI) resting on the estimation of internal migration functions. Once the RDIs are estimated, we proceed to a test sigma, beta and unit root convergence. Our results point towards regional divergence with rather bleak consequences for Hungarian and indeed European cohesion aims.
The effectiveness of support directed to less developed regions is a timely question more than halfway through the 2014–2020 programming period. We present an analysis of the impact of rural ...development support on the well-being of Hungarian LAU1 regions between 2008 and 2013. The aim was to measure the overall impact of all of the Rural Development Funds, covering all measures within the program. Two indices of local well-being were used: the multi-dimensional, local-variables-based Regional Development Index that measures the overall level of regional development and a simple, migration-based index as a proxy for perceived quality of life. Generalized propensity score matching, and difference-in-differences estimation techniques were employed to evaluate the impact of subsidies. Irrespective of how the amount of support was calculated, the measure of local well-being, or the methodology employed, the impact was not significant, and was sometimes even negative. This casts doubt on the effectiveness of Rural Development Policy in Hungary.
We investigate determinants of quality upgrades in EU agri‐food exports using panel data models for the period 2000–2011. By employing highly disaggregated data we show that the unit value of exports ...is positively correlated to level of economic development and size of population. Our results highlight the negative impacts of comparative advantage and trade costs on upgrades in export quality. Our analysis partly confirms the role of income distribution in quality specialisation, that greater income inequality increases specialisation in quality upgrades. Findings are robust when applied to alternative subsamples, including vertically specialised and final agri‐food products.
Summary
The Covid‐19 pandemic has fundamentally reshaped our lives. Its effects on the sales and use of marketing channels of small‐scale Hungarian producers are addressed here. Based on the level of ...proximity, sales channels were classified into three types. Due to local regulations concerning restrictions on movement, it was only impersonal (online) channels that survived, or the opposite type, i.e. very personal ones involving the face‐to‐face meeting of producers and consumers in the private spaces (mostly homes) of one of the parties. Results from the survey of 136 producers reveal that 60 per cent suffered an economic loss due to loss of sales, while 10 per cent increased their sales. Successful producers were those lucky enough to be operating within the fresh fruit and vegetable sector, within which consumer demand increased significantly. The parallel use of several sales channels before the virus outbreak increased subsequent chances of success by increasing the probability that some of the channels would remain operational. Furthermore, successful producers had invested a lot of work pre‐Covid into maintaining private relationships with their customers; a situation that proved vital during times of restrictions. Also, the former moved fast, and were open enough to learn and make use of the opportunities modern technology offered them.
La pandémie de Covid‐19 a profondément remodelé nos vies. Cet article examine ses effets sur les ventes et l'utilisation des circuits de commercialisation des petits producteurs hongrois. En fonction du niveau de proximité, les canaux de vente ont été classés en trois types. En raison des réglementations locales concernant les restrictions de circulation, ce ne sont que des canaux virtuels (en ligne) qui ont survécu, ou du type opposé, c'est‐à‐dire des canaux très personnels impliquant la rencontre en face à face de producteurs et de consommateurs dans des espaces privés (principalement à domicile) de l'une des parties. Les résultats de l'enquête auprès de 136 producteurs révèlent que 60 pour cent ont subi une perte économique en raison de la baisse de leurs ventes, tandis que celles‐ci augmentaient pour 10 pour cent d'entre eux. Les producteurs qui réussissaient étaient ceux qui avaient la chance de travailler dans le secteur des fruits et légumes frais, dans lequel la demande des consommateurs a augmenté de manière significative. L'utilisation parallèle de plusieurs canaux de vente avant l’épidémie de virus a augmenté les chances de succès ultérieures en augmentant la probabilité que certains des canaux restent opérationnels. En outre, les producteurs prospères avaient investi beaucoup de travail avant la pandémie pour maintenir des relations privées avec leurs clients; une situation qui s'est avérée vitale en période de restrictions. En outre, ces producteurs ont évolué rapidement et étaient suffisamment ouverts pour apprendre et profiter des opportunités que la technologie moderne leur offrait.
Die Covid‐19‐Pandemie hat unser Leben grundlegend umgestaltet. Ihre Auswirkungen auf den Absatz und die Nutzung von Marketingkanälen durch Kleinerzeuger und Kleinerzeugerinnen in Ungarn werden hier behandelt. Die Marketingkanäle wurden je nach räumlicher Nähe in drei Typen eingeteilt. Infolge der lokalen Vorschriften zur Einschränkung der Bewegungsfreiheit überlebten nur die unpersönlichen (Online‐)Kanäle oder der umgekehrte Typ, d.h. sehr persönliche Kanäle. Hier trafen sich Produzentinnen und Produzenten mit ihrer Kundschaft in den privaten Räumen (meist zu Hause) einer der beiden Parteien. Die Ergebnisse einer Umfrage unter 136 Produzierenden zeigen, dass 60 Prozent aufgrund von Umsatzeinbußen einen wirtschaftlichen Verlust erlitten, während 10 Prozent ihren Umsatz steigern konnten. Erfolgreiche Produzierende waren diejenigen, die das Glück hatten, im Frischobst‐ und Gemüsesektor tätig zu sein, in dem die Nachfrage deutlich zunahm. Die parallele Nutzung mehrerer Absatzkanäle vor dem Ausbruch des Virus erhöhte die späteren Erfolgschancen, da die Wahrscheinlichkeit, dass einige der Kanäle auch später funktionsfähig blieben, zunahm. Außerdem hatten erfolgreiche Produzierende vor dem Ausbruch des Virus viel Arbeit investiert, um die privaten Beziehungen zu ihrer Kundschaft aufrechtzuerhalten. Dies erwies sich während der Zeit der Einschränkungen als wesentlich.
This paper explores to what extent product and marketing channel diversification contributed to the economic success of small-scale agricultural producers involved in short food supply chains after ...the outbreak of the COVID-19 pandemic. A survey was conducted between April and July 2020 in four countries of the European Union-Estonia, Hungary, Portugal and Romania,-resulting in a relatively large sample of farmers (N = 421). The analysis was built on a semi-nonparametric approach. Approximately 19 percent of small-scale producers were able to increase sales during the first wave of the pandemic, although country-level variation was significant. Fruits and vegetables were by far the most popular products. The importance of specific channels varied across countries, but farm gate sales were among the most important marketing channels both before and during the first wave. The importance of channels that were based on digital resources and home delivery increased. Our evidence indicates that diversification was a strategy that paid off, both in terms of marketing channels and different product categories. However, the impact appears to be nonlinear; the initial advantage generated by diversification rapidly tapered off, either temporarily (in the case of products), or permanently (in the case of marketing channels). Later research may clarify whether these findings are generalizable in other socio-economic contexts, as well as in a non-COVID situation.
Purpose
– The purpose of this paper is to investigate the innovation performance in the Hungarian food chain using the concept of open innovation.
Design/methodology/approach
– Empirical analysis is ...based on the data from a 2014 survey of more than 300 small- and medium-sized agricultural producers, food processors and food retailers. The authors analyse innovation performance taking into account not only the direct impacts of external knowledge inflows and absorptive capacity, but also the indirect effect of external knowledge inflows mediated by the existence of potentially complementary internal resources (absorptive capacity). The authors determine the impact of open innovation and a company’s absorptive capacity on innovation performance employing two stage approaches. First, the authors apply a semi-non parametric probit model. Second, the authors run cluster analysis to categorize companies based on their open innovation, absorptive capacity, firm and managerial characteristics.
Findings
– Results imply the openness along the food chain may decrease the introduction time of innovation in all areas of innovation, as well the innovation propensity. The openness towards competitors may decrease the introduction time of innovation with regard to technological innovation, but it may increase with regard to product innovation, as well the innovation propensity. The absorptive capacity decreases the introduction time of technological product, organizational and market innovation. There is a positive relationship between the use of external knowledge (when it is defined as openness with competitors) and own innovation capacity with regard to innovation propensity, but not when it is defined as openness along the food chain. The enterprises of the sample are dividing into two groups: innovative (dominated by processors) and not innovative ones (dominated by producers and retailers).
Research limitations/implications
– Some limitations of the paper are worth mentioning. The study is limited in its scope with regard to the research setting and the unit of analysis (Hungarian food chain). With regard to the former, our sample consists of 302 SMEs along the food chain, almost equally distributed as producers, processors and retailers. At the end of 2014 in Hungary there were 7,766 producers, 2,681 processors and 6,420 retailers in this category, which means 1.3 – 3.7 per cent coverage (Agrárgazdasági Kutatóintézet, 2014). Regarding the latter, the paper defines food chain in a narrow sense (three levels); therefore, the results represent the perspectives of a limited number of food chain partners (producers, processors, retailers). Were the definition to be widened, input from additional members would be necessary (such as suppliers of suppliers, customers of customers, third parties or competitors). Nevertheless, although the scope may be narrow, it is appropriate for our objective. Future research is recommended to overcome the paper’s limitations (i.e. extend its scope to other countries, sectors and levels of chain).
Practical implications
– The analysis provides valuable inputs for policy makers and SMEs along the food chain that wish to build and improve (open) innovation system. Policy makers would need more targeted innovation development programmes in order to solve the tight innovation bottlenecks. These programmes should target first of all at expanding the absorptive capacities of the food chain’s enterprises. The authors also need further research in order to investigate how much the restricted use of open innovation systems in the Hungarian food enterprises is linked to the cost and benefits of creation such systems.
Originality/value
– The authors analyse innovation performance taking into account not only the direct impacts of external knowledge inflows and absorptive capacity, but also the indirect effect of external knowledge inflows mediated by the existence of potentially complementary internal resources (absorptive capacity).
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