What is it about?

We investigate the development of trade linkages and reconstruct the trade network in the European dairy industry over the period 2001–2015. We seek to uncover to what extent building new trade connections between EU Member States depends on the pre-existing structure of the network.

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Why is it important?

While the positive effect of economic integration on trade is commonly accepted, we still lack a proper understanding of the complex patterns behind this phenomenon. it is important to better understand how the structure of trade linkages evolves. The analysis of the evolution of trade network is of interest not only in itself, but is also salient from a policy perspective.In this context, an improved understanding of the structure of the trade network and its impacts might help to predict the development of new trade linkages and their consequences.


Having a better knowledge of trade network evolution allows more accurate predictions of when and how a given shock may propagate from one country to another. This relates to both shocks that are policy-driven (i.e. introduced by a certain governmental intervention) as well as exogenous shocks related, for instance, to health issues (e.g. COVID-19) or natural disaster (e.g. an earthquake).

Professor Imre Ferto
Centre for Economic and Regional Studies, Hungarian Academy of Sciences: Budapest

Read the Original

This page is a summary of: Dairy sector trade dynamics: Some insights on the evolution of trade linkages within the EU, Journal of Agricultural Economics, April 2021, Wiley,
DOI: 10.1111/1477-9552.12429.
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