The Evaluation of Competitiveness of the Hungarian Wine Sector

Abstract

In the last few decades the global wine market has undergone several changes. These changes have considerably influenced the competitiveness of major European wine exporter countries and the Hungarian wine industry as well. Based on empirical studies the most popular way to assess the international wine competitiveness is the different formula of Balassa indices. According to Balassa (1965), the comparative advantage is manifested by high while the comparative disadvantage by low export market shares. In the work of Balassa (1965), Vollrath (1991), Hoen and Oosterhaven (2006), Yu et al. (2009) suggested several types of modified competitiveness indices. This study analyses the international competitiveness of Hungarian wine trade by the help of revealed comparative advantage and competitiveness indices (RCA, ARCA, NRCA, RTA, RC) between 2000 and 2013. It investigates the changes of indices in terms of world and regional point of view. The stability of indicators is tested by Markov transition probability matrix.