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Abstract

International trade and the related trade theory are closely related to competitiveness. The focus of the following study is on the competitiveness of Hungary, which examines the development of comparative advantage in the two most significant aspects of horticultural products, tomatoes and cucumbers. Therefore, the main objective is to examine whether Hungary has a comparative advantage over the EU28 countries in the case of fresh market tomatoes and cucumbers. The data for the study were provided by the Faostat1 database. The study focuses on the period between 2004 and 2019, dividing them into 5-year (average) cycles. The chosen method for measuring comparative advantage was the most recognized and widespread RCA index group. Although Hungary is not a dominant vegetable producing country in European terms, its importance is considerable, with the fruit and vegetable sector representing 10-13% of the agricultural production value. Regarding the results, it can be stated that Hungary does not have a comparative advantage in either tomatoes or cucumbers. In the tomato sector, the RCA indicator falls in the range between 0 and 1, so we do not have a comparative advantage. Spain and the Netherlands have a stable competitive advantage, these countries show a weak comparative advantage in all examined periods, as the value of the indicator exceeds 1, but does not reach 2. In the case of the cucumber sector, the results also fall short of the expected value. The RCA indicator falls in the range between 0 and 1, its value in the 2004–2019 period is 0.28, so it can be clearly stated that our country does not have a comparative advantage in this sector either. A competitive advantage can be established in the case of two countries: the indices of Spain and the Netherlands continuously show a value above 1, so these countries can claim a weak comparative advantage in relation to the EU28.

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