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Determinants for international competitiveness of the food industry in 43 countries worldwide: evidence from panel models

Author

Listed:
  • Mariusz Hamulczuk

    (Warsaw University of Life Sciences, Poland)

  • Karolina Pawlak

    (Poznañ University of Life Sciences, Poland)

Abstract
Research background: Food industry is of key importance to each economy due to its role in ensuring food security, balancing the labour market, as well as contributing to the economic growth and international trade. With a limited increase in demand for food in many highly developed countries, further growth in this sector of the economy will largely depend on the ability to successfully distribute manufactured goods in international markets and cope with competitive pressure from other entities. Purpose of the article: Therefore, the study attempts to assess the determinants of international competitiveness of the food industry worldwide measured by the trade balance. Methods: The research was based on data from the United Nations Conference on Trade and Development Data Center (UNCTADStat) and the World Input-Output Database (WIOD). The time frame for the analyses was determined by the availability of internationally comparable data and thus covered the period of 2000–2014. The empirical analysis was performed with the use of panel models, while international competitiveness was measured by trade balance (net export). Findings & value added: It was proved that increasing trade openness and relative demand, as well as decreasing relative unit labour costs have a positive impact on international competitiveness of the food industry worldwide. However, the nature of the relationship between relative labour productivity and trade balance appears to be ambiguous. A stronger impact of the examined factors on net exports in the long-run rather than the short-run was also evidenced. The novelty of our analysis is that we consider trade balance determinants of the food industry worldwide using panel models, whereas most of the existing studies focus either on one or a narrow group of countries.

Suggested Citation

  • Mariusz Hamulczuk & Karolina Pawlak, 2022. "Determinants for international competitiveness of the food industry in 43 countries worldwide: evidence from panel models," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(3), pages 635-667, September.
    • Handle: RePEc:pes:ierequ:v:17:y:2022:i:3:p:635-667
    DOI: 10.24136/eq.2022.022
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    Cited by:

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    2. Ivo Zdráhal & Francois Stefanus Lategan & Melissa van der Merwe, 2023. "A constant market share analysis of the competitiveness of the Czech Republic's agrifood exports (2002-2020) to the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(12), pages 498-509.
    3. Ivo Zdráhal & Francois Stefanus Lategan & Melissa van der Merwe, . "A constant market share analysis of the competitiveness of the Czech Republic's agrifood exports (2002-2020) to the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 0.
    4. Mina Kovljenić & Bojan Matkovski & Danilo Đokić, 2024. "Competitiveness and Cereal Self-Sufficiency in Western Balkan Countries," Agriculture, MDPI, vol. 14(9), pages 1-23, August.

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    More about this item

    Keywords

    international competitiveness; trade balance; food industry; panel models;
    All these keywords.

    JEL classification:

    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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