Evaluation of the Competitive Situation of Tomato and Cucumber in the European Union

Krivdáné Dorogi, Dóra Anikó

Keywords: horticulture, vegetables, RCA, competitiveness, trade, Q10, Q13, Q17

International trade and related trade theory are closely linked to competitiveness. The focus of this study is on the competitiveness of Hungary, which examines the development of comparative advantage in the aspect of the most significant horticultural products; tomato, and cucumber. Consequently, the main objective is whether Hungary has comparative advantage over the EU-28 countries with respect to fresh tomato and cucumber. Separate calculations were made on these products in the examination. Data in the study were provided by FAOSTAT database. The study period focuses on results between 2019 and 2004, breaking them down into 5-year (average) cycles.
RCA index group was the method applied, which is the most approved and widespread measure of comparative advantage.
Although Hungary is neither a vegetable producer nor a trader nation, it is still of great importance for agriculture, with the fruit and vegetable sector accounting for 10-13% of the production value of agriculture. Based on the results, it can be concluded that Hungary does not have comparative advantage either in tomato or cucumber. For the values of the tomato sector, RCA index is in the range of 0 and 1, therefore Hungary has no comparative advantage. Spain and the Netherlands have stable competitive advantages. These countries show a weak comparative advantage in all periods studied, as the indicator values exceed 1, but do not reach 2. Regarding the cucumber sector, the results are below expectations. RCA indicator falls in the range of 0 and 1, its value is 0.28 in the period of 2004-2019, therefore it can be clearly concluded that Hungary does not have comparative advantage in this sector, either. A competitive advantage was found for two countries. Indices of Spain and the Netherlands are consistently above 1, as a consequence, these countries may have weak comparative advantage over the EU-28.

Full article