The Competitiveness of the Hungarian Agri-Food Sector : From Transition to Accession

The Hungarian agricultural sector has undergone substantial changes between 1992 and 2003, which was a period of transformation from command economy to an EU-conform market economy. The question is whether the Hungarian agricultural sector was able to keep its competitiveness despite the extensive transformation. The aim of this paper is to measure the competitiveness of Hungarian agri-food product groups in relation to the ones of the EU-15 during the transformation period. Results indicate that the competitiveness, measured by revealed comparative advantage (RCA), of the studied agri-food product groups has not changed considerably. The strong position of the Hungarian agricultural sector could be maintained because its competitiveness is based on factor endowments, which are not affected by changes of economic policy. The observed moderate fluctuations of competitiveness can be derived to trade concession changes