European Enlargement and Agro-Food Trade

This paper investigates the level, composition, and differences in the dynamics of revealed comparative advantage and trade specialization patterns of the 12 new member states (NMS-12) as part of the enlarged European Union 27 countries (EU-27). The NMS-12 are classified into four country groups: the Baltic States, the CEFTA-5, and the Mediterranean and the Balkan regions. The empirical analysis employs a regression framework, a duration analysis, Markov transition probability matrices, and mobility indices. Trade increases with the EU enlargement and so does revealed comparative advantage in agro-food products. There are catching-up difficulties, as indicated by revealed comparative advantage, in higher added-value processed products.