HORTICULTURAL IMPORTS OF THE EUROPEAN COMMUNITY FROM DEVELOPING COUNTRIES

This paper develops a framework for analyzing the sources of horticultural import growth from LDCs (developing countries) to the EC (Economic Community, defined here to include only the former nine members). The substantive components into which the observed change in LDC exports of horticultural products to the EC from 1975–79 to 1985–89 are decomposed represent the following: (1) the regional preference effect, arising from a change in EC trade preferences to LDC region is affecting horticultural product k; (2) the regional export share effect, arising from a change in the share of i in total non-EC exports of k; (3) the non-EC preference effect, arising from a change in the share of non-EC suppliers’ as a group in total EC imports of k; and (4) the import growth effect, arising from a change in total EC imports of k.
Developing countries are grouped into nine regions based on geographical proximity and political relations with the EC. The following horticultural product categories are distinguished: fresh fruits, fresh vegetables, and processed products.

The decomposition analysis indicate that the main source of EC horticultural import growth from LDCs is attributable to the import growth effect.
However, it has been significantly counteracted by the negative effect of a declining share of non-EC suppliers as a group.
The non-EC preference effect is found negative for fresh vegetables and processed products but not for fresh fruits.
The three Latin American regions (Andean-Brazil, Southern Cone, and Central America) show the largest increases in total horticultural exports to the EC–mostly due to the regional export share effect.
Lastly, no strong association is observed between the magnitude of the regional preference effect and the existence of preferential trade agreements with the EC.

XII International Symposium on Horticultural Economics

J. Garcia, Romeo M. Bautista

https://doi.org/10.17660/ActaHortic.1995.340.37