The Impact of Trade Costs and Food Crisis on the Hungarian Maize Export

Fertő, Imre – Szerb, András Bence

Keywords: agriculture, grain trading, maize, Hungary, gravity model, Q11, Q13, Q17

The maize is one of the most important agricultural export product in Hungary. The paper investigates the role of the economic crisis and trade costs in the pattern of Hungarian maize exports over the period 1996-2015. We employ a standard gravity model to explain the drivers of the Hungarian maize export on the world market. Our results suggest that both Hungarian market size and the market size of the partners have positive and significant impact on the Hungarian maize export. The trade costs have negative impact, whilst the EU enlargement and the economic crisis positively influence the Hungarian maize export.

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