Factors affecting competition in olive oil exports: Panel data analysis of selected countries. Case study


Pehlivanoğlu F., Erarslan C., Demir S. (2021): Factors affecting competition in olive oil exports: Panel data analysis of selected countries. Case study. Agric. Econ. – Czech, 67: 511–518.

download PDF

Recently, the growing interest in healthy and organic nutrition has led to an increase in both the consumption and production of olive oil. The fact that olive and olive oil production is mostly concentrated in the countries with a coastline on the Mediterranean has rendered their olive oil exports important in meeting the increasing demand for olive oil. For the exporting countries, this has raised the issues of having a large share in the international olive oil market and increasing their competitiveness. The importance of increasing competitiveness, especially for countries that generate income from agricultural production, is the driving force for conducting this study. The aim of the study was to determine the factors affecting the comparative advantages of the leading olive oil-exporting countries. In this context, the olive oil production, consumption and unit export prices of Turkey, Spain, Italy, Portugal, Greece and Tunisia for the 2000–2019 period were tested with a panel data analysis method to ascertain whether these variables have any significant effect on the revealed comparative advantage (RCA) index. According to the findings, olive oil production affects the RCA index positively, whereas olive oil consumption affects it negatively in a statistically significant way.

Abolagba E.O., Onyekwere N.C., Agbonkpolor B.N., Umar H.Y. (2010): Determinants of agricultural exports. Journal of Human Ecology, 29: 181–184. https://doi.org/10.1080/09709274.2010.11906261
Balassa B. (1965): Trade liberalization and 'revealed' comparative advantage. The Manchester School, 33: 99–123. https://doi.org/10.1111/j.1467-9957.1965.tb00050.x
Baltagi B.H., Wu P.X. (1999): Unequally spaced panel data regressions with AR(1) disturbances. Econometric Theory, 15: 814–823. https://doi.org/10.1017/S0266466699156020
Brown M., Forsythe A. (1974): The small sample behavior of some statistics which test the equality of several means. Journal of the American Statistical Association, 69: 364–367.
Chamorro-Mera A., Román-Suero B., García-Galán M.D.M. (2020): The structure of preferences of olive oil importers: The country of origin effect. Journal of Food Products Marketing, 26: 457–469. https://doi.org/10.1080/10454446.2020.1802380
D'Agostino R.B., Belanger A., D'Agostino Jr. R.B. (1990): A suggestion for using powerful and informative tests of normality. The American Statistician, 44: 316–321.
Friedman M. (1937): The use of ranks to avoid the assumption of normality implicit in the analysis of variance. Journal of the American Statistical Association, 32: 675–701. https://doi.org/10.1080/01621459.1937.10503522
Gambella F., Bianchini L., Cecchini M., Egidi G., Ferrara A., Salvati L., Colantoni A., Morea D. (2021): Moving toward the north? The spatial shift of olive groves in Italy. Agricultural Economics – Czech, 67: 129–135. https://doi.org/10.17221/467/2020-AGRICECON
IOC (2019): Newsletter International Olive Council, No. 144, December 2019. International Olive Council. Available at https://www.internationaloliveoil.org/wp-content/uploads/2019/12/NEWSLETTER_144_ENGLISH.pdf (accessed May 1, 2020).
IOC (2020): World Olive Oil and Table Olive Figures. [Dataset]. International Olive Council. Available at https://www.internationaloliveoil.org/what-we-do/economic-affairs-promotion-unit/#figures (accessed July 12, 2020).
Kashiwagi K., Yamna E., Arfa L., Zaibet L. (2020): Growing olive oil export and intra-industry trade in Mediterranean countries: Application of gravity model. Sustainability, 12: 1–16. https://doi.org/10.3390/su12177027
Kavallari A., Maas S., Schmitz P.M. (2011): Examining the determinants of olive oil demand in nonproducing countries: Evidence from Germany and the UK. Journal of Food Products Marketing, 17: 355–372. https://doi.org/10.1080/10454446.2011.548721
Klonaris S., Agiangkatzoglou A. (2017): Competitiveness of Greek virgin olive oil in the main destination markets. British Food Journal, 120: 80–95. https://doi.org/10.1108/BFJ-07-2016-0331
Mane-Kapaj A., Kapaj I., Chan-Halbrendt C., Totojani O. (2010): Assessing the comparative advantage of Albanian olive oil production. The International Food and Agribusiness Management Review, 13: 1–12.
Pomarici E., Vecchio R. (2013): The Italian olive oil industry in the global competitive scenario. Agricultural Economics – Czech, 59: 361–372. https://doi.org/10.17221/8/2013-AGRICECON
Ramon Muñoz R. (2010): Product differentiation and entry barriers: Mediterranean export firms in the American markets for olive oil prior to World War II. Business History, 52: 390–416. https://doi.org/10.1080/00076791003721613
Türkekul B., Günden C., Abay C., Miran B. (2010): Competitiveness of Mediterranean countries in the olive oil market. New Medit, 9: 41–46.
Turkish Official Gazette (2004): Communiqué on Putting into Effect of Revised Edible Olive Oil Standard TS 341 and Methods of Analysis for Edible Olive Oils Standard TS 342 as Compulsory Standards on Foreign Trade (No: 2004/30) Available at https://www.tariff-tr.com/legislation/item/4533.aspx (accessed Sept 23, 2020).
UN Comtrade Database (2020): Exports of Olive Oil. [Dataset]. United Nations Comtrade Database. Available at https://comtrade.un.org/data/ (accessed Dec 28, 2020).
World Bank (2020): Exports of Goods and Services. [Dataset]. World Bank. Available at https://databank.worldbank.org/source/world-development-indicators (accessed Dec 28, 2020).
download PDF

© 2022 Czech Academy of Agricultural Sciences | Prohlášení o přístupnosti