Vegetable Trade Flows and Chain Competitiveness Linkage Analysis Based on Spatial Panel Econometric Modelling and Porter’s Diamond Model
The vegetable sector plays an important role in ensuring food security. Vegetable trade flows in Romania have become a major concern due to constant trade balance deficits despite the country’s agricultural potential. Taking into account the paradox between what could be considered an abundance of f...
| Main Authors: | , , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2022-02-01
|
| Series: | Agronomy |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2073-4395/12/2/411 |
| _version_ | 1797483655383220224 |
|---|---|
| author | Marius Constantin Mihail-Dumitru Sacală Mihai Dinu Maria Piștalu Simona Roxana Pătărlăgeanu Irina-Denisa Munteanu |
| author_facet | Marius Constantin Mihail-Dumitru Sacală Mihai Dinu Maria Piștalu Simona Roxana Pătărlăgeanu Irina-Denisa Munteanu |
| author_sort | Marius Constantin |
| collection | DOAJ |
| description | The vegetable sector plays an important role in ensuring food security. Vegetable trade flows in Romania have become a major concern due to constant trade balance deficits despite the country’s agricultural potential. Taking into account the paradox between what could be considered an abundance of factor endowments and poor trade balance results, the objective of this research was to study the linkage between vegetable trade flows and chain competitiveness. Spatial panel econometric methods were used to study the impact of the international vegetable market on the demand in Romania, while the Balassa index and Porter’s diamond modelling techniques were used to study the competitiveness of the vegetable chain at both county and national levels. By applying the spatial regression method to the international trade and national production panel data, it was found that an increase in the quantity of vegetables imported into Romania would cause an even greater decrease in national vegetable production. The results show that Romanian vegetable production is highly and negatively influenced by the growing appetite for imports—therefore leading to a national dependence on the global vegetable chain. Porter’s diamond model results confirm that: (a) growing vegetables is profitable in Romania and the average profit margin is higher in this economic sector than in many others; (b) there is a lack of competitiveness caused by the post-communist excessively fragmented agrarian land structure and poor performance of the irrigation, warehousing, and transportation sectors; (c) the national production of vegetables is generally self-sufficient with the exception of three counties that resort to importing and account for more than 70% of Romania’s total vegetable imports; (d) factor endowments cannot be fully harnessed, and this contributes to the deepening of the trade balance deficits. Improvement is possible by fostering competitiveness through increasing the performance of supporting industries and the logistics infrastructure, as well as removing market access barriers for the many small farmers. |
| first_indexed | 2024-03-09T22:50:07Z |
| format | Article |
| id | doaj.art-31c35136fdf34db5b5cdf1fd18171f1e |
| institution | Directory Open Access Journal |
| issn | 2073-4395 |
| language | English |
| last_indexed | 2024-03-09T22:50:07Z |
| publishDate | 2022-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Agronomy |
| spelling | doaj.art-31c35136fdf34db5b5cdf1fd18171f1e2023-11-23T18:21:35ZengMDPI AGAgronomy2073-43952022-02-0112241110.3390/agronomy12020411Vegetable Trade Flows and Chain Competitiveness Linkage Analysis Based on Spatial Panel Econometric Modelling and Porter’s Diamond ModelMarius Constantin0Mihail-Dumitru Sacală1Mihai Dinu2Maria Piștalu3Simona Roxana Pătărlăgeanu4Irina-Denisa Munteanu5Department of Agri-Food and Environmental Economics, Faculty of Agri-Food and Environmental Economics, Bucharest University of Economic Studies, 010374 Bucharest, RomaniaDepartment of Statistics and Econometrics, Faculty of Cybernetics, Statistics and Informatics, Bucharest University of Economic Studies, 010374 Bucharest, RomaniaDepartment of Agri-Food and Environmental Economics, Faculty of Agri-Food and Environmental Economics, Bucharest University of Economic Studies, 010374 Bucharest, RomaniaDepartment of Agri-Food and Environmental Economics, Faculty of Agri-Food and Environmental Economics, Bucharest University of Economic Studies, 010374 Bucharest, RomaniaDepartment of Agri-Food and Environmental Economics, Faculty of Agri-Food and Environmental Economics, Bucharest University of Economic Studies, 010374 Bucharest, RomaniaDepartment of Statistics and Econometrics, Faculty of Cybernetics, Statistics and Informatics, Bucharest University of Economic Studies, 010374 Bucharest, RomaniaThe vegetable sector plays an important role in ensuring food security. Vegetable trade flows in Romania have become a major concern due to constant trade balance deficits despite the country’s agricultural potential. Taking into account the paradox between what could be considered an abundance of factor endowments and poor trade balance results, the objective of this research was to study the linkage between vegetable trade flows and chain competitiveness. Spatial panel econometric methods were used to study the impact of the international vegetable market on the demand in Romania, while the Balassa index and Porter’s diamond modelling techniques were used to study the competitiveness of the vegetable chain at both county and national levels. By applying the spatial regression method to the international trade and national production panel data, it was found that an increase in the quantity of vegetables imported into Romania would cause an even greater decrease in national vegetable production. The results show that Romanian vegetable production is highly and negatively influenced by the growing appetite for imports—therefore leading to a national dependence on the global vegetable chain. Porter’s diamond model results confirm that: (a) growing vegetables is profitable in Romania and the average profit margin is higher in this economic sector than in many others; (b) there is a lack of competitiveness caused by the post-communist excessively fragmented agrarian land structure and poor performance of the irrigation, warehousing, and transportation sectors; (c) the national production of vegetables is generally self-sufficient with the exception of three counties that resort to importing and account for more than 70% of Romania’s total vegetable imports; (d) factor endowments cannot be fully harnessed, and this contributes to the deepening of the trade balance deficits. Improvement is possible by fostering competitiveness through increasing the performance of supporting industries and the logistics infrastructure, as well as removing market access barriers for the many small farmers.https://www.mdpi.com/2073-4395/12/2/411agricultural performanceBalassa indexeconomic competitivenessfood securityPorter’s diamond modelcompetitive advantage |
| spellingShingle | Marius Constantin Mihail-Dumitru Sacală Mihai Dinu Maria Piștalu Simona Roxana Pătărlăgeanu Irina-Denisa Munteanu Vegetable Trade Flows and Chain Competitiveness Linkage Analysis Based on Spatial Panel Econometric Modelling and Porter’s Diamond Model Agronomy agricultural performance Balassa index economic competitiveness food security Porter’s diamond model competitive advantage |
| title | Vegetable Trade Flows and Chain Competitiveness Linkage Analysis Based on Spatial Panel Econometric Modelling and Porter’s Diamond Model |
| title_full | Vegetable Trade Flows and Chain Competitiveness Linkage Analysis Based on Spatial Panel Econometric Modelling and Porter’s Diamond Model |
| title_fullStr | Vegetable Trade Flows and Chain Competitiveness Linkage Analysis Based on Spatial Panel Econometric Modelling and Porter’s Diamond Model |
| title_full_unstemmed | Vegetable Trade Flows and Chain Competitiveness Linkage Analysis Based on Spatial Panel Econometric Modelling and Porter’s Diamond Model |
| title_short | Vegetable Trade Flows and Chain Competitiveness Linkage Analysis Based on Spatial Panel Econometric Modelling and Porter’s Diamond Model |
| title_sort | vegetable trade flows and chain competitiveness linkage analysis based on spatial panel econometric modelling and porter s diamond model |
| topic | agricultural performance Balassa index economic competitiveness food security Porter’s diamond model competitive advantage |
| url | https://www.mdpi.com/2073-4395/12/2/411 |
| work_keys_str_mv | AT mariusconstantin vegetabletradeflowsandchaincompetitivenesslinkageanalysisbasedonspatialpaneleconometricmodellingandportersdiamondmodel AT mihaildumitrusacala vegetabletradeflowsandchaincompetitivenesslinkageanalysisbasedonspatialpaneleconometricmodellingandportersdiamondmodel AT mihaidinu vegetabletradeflowsandchaincompetitivenesslinkageanalysisbasedonspatialpaneleconometricmodellingandportersdiamondmodel AT mariapistalu vegetabletradeflowsandchaincompetitivenesslinkageanalysisbasedonspatialpaneleconometricmodellingandportersdiamondmodel AT simonaroxanapatarlageanu vegetabletradeflowsandchaincompetitivenesslinkageanalysisbasedonspatialpaneleconometricmodellingandportersdiamondmodel AT irinadenisamunteanu vegetabletradeflowsandchaincompetitivenesslinkageanalysisbasedonspatialpaneleconometricmodellingandportersdiamondmodel |