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Abstract

The aim of the study is to investigate the dynamic relationship between agro-food exports and production of agricultural sectors of EU countries in the period of 1994-2011. In the sake of accessing the degree of the interdependency between researched factors the time series techniques were employed. The first stage of the analysis was the assessment of the modeling process formal condition – the examination of variables stationarity. Because the stationarity hypothesis was rejected, the variables were differentiated to achieve stationarity. Subsequently, considered relationship was quantified by the mean of dynamic panel model. The model parameters suggest considerable impact of agro-food exports as immediate factor stimulating agricultural production among EU countries.

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