CHANGES IN THE COMPETITIVE POSITION OF CHINA AND THE EUROPEAN UNION IN INTERNATIONAL AGRICULTURAL AND FOOD TRADE CONSIDERINGAGRICULTURAL WORKFORCE PRODUCTIVITY

Abstract

This paper aims to evaluate the competitive position of China and the European Union in international agricultural and food trade using properly selected measurement indicators and comparing the resulting values with changes in workforce productivity in agriculture. On foreign markets, an improvement in the competitive position of a country/ regional group is equivalent to an increase in the share of a specific entity in export markets. One of the basic determinants of the scale of regional and global competitiveness is workforce productivity. The period of analysis ranges from 2001 to 2017. Data was retrieved from statistics database FAOSTAT and the World Bank. The analysis used indicator-based methods. The studies carried out endorse the statement that a larger improvement in workforce productivity in agriculture in China compared to EU countries had little influence on the international competitive position of that country compared to EU countries. In the analyzed period, the value of the trade coverage ratio (TCR) is decreasing for China and increasing for the EU, as is the value of the relative export orientation index (REO). In the case of China, the negative balance of trade is deepening, while the EU achieves a positive balance in agricultural and food trade in 2010. The results of analyses point to an improvement in the competitive position of the European Union and a deterioration in the position of China in international agricultural and food trade.

Keywords

• China
• EU
• balance of trade
• trade coverage ratio
• import penetration ratio
• relative export orientation index