Open AccessDeterminants of variation of potato prices in the European Union
Author(s) -
Krzysztof Firleja,
Sebastian Kubala
Publication year - 2020
Publication title -
economia agro-alimentare
Language(s) - English
Resource type - Journals
eISSN - 1972-4802
pISSN - 1126-1668
DOI - 10.3280/ecag2019-003007
Subject(s) - european union , value (mathematics) , agriculture , economics , product (mathematics) , production (economics) , agribusiness , gross domestic product , agricultural economics , international trade , business , microeconomics , geography , macroeconomics , mathematics , statistics , geometry , archaeology
Prices are considered to be an only, directly observable market parameter, deciding on a degree of implementation of functions of market entities. The variability is inherent to prices, in accordance to an attribute of functioning on competitive market. Examination of factors affecting the prices is particularly significant on account of occurrence of many potential variables which may impact their levels and still increasing market ties among particular economies. Potato is one of the basic agricultural raw materials in the world. Potato is of high economic value, mainly through the universal usability both by manufacturers as well as consumers. The purpose of the article was to determine of variables characterizing strong dependency on evolving level of potato prices in the EU countries. Attempts of building a model aimed at depicting potato prices evolution in the European Union countries under an influence of particular variables was performed using panel data models. Conducted analyses allowed to indicate the occurrence of regional variation of potato prices in particular European Union countries. It was also shown that essential impact on a potato prices level is potato production volume, value of gross domestic product and potato import volumes.