Proceedings of the 35th International Academic Conference, Barcelona

MARKET OPENNESS AND LITHUANIAN AGRIFOOD TRADE IN THE CONTEXT OF CHANGING TRADE CONDITIONS

JOLANTA DROZDZ

Abstract:

The multilateral trade liberalisation process has gradually transformed into regionalism where countries initiate bilateral, interregional agreements. Regional integration of separate countries, regions or groups of countries has also become stronger. Deeper economic integration of the countries has changed the conditions of international trade. Timely adaptation to the change in the international trade conditions is the essential condition of sustainable development of international trade linked to the more rapid economic growth of countries. The paper performs the Lithuanian agricultural and food sector in the changing international trade conditions during the period of 1999-2014. Analysis of the international trade of Lithuanian agricultural and food products divided into three phases. The first phase covers the period from 1999 to 2003 (before Lithuania's accession to the EU). The second phase covers the period from 2004 to 2008 (trade peak since joining the EU by 2008 the global economic crisis). In addition, the third stage includes the period from 2009 to 2014 (recovery after the crisis period). Market openness effect on agrifood trade of Lithuania measured by Open Trade Index (OTI). OTI formula adopted for agricultural sector performance analysis. The net effect of the EU membership evaluated. Suggested approach shows the complexity of the international trading system and specifies the further development of export direction.

Keywords: market openness, trade liberalisation, agrifood trade, economic integration

DOI: 10.20472/IAC.2018.935.014

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