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Protected geographical indication recognition and willingness to pay: A case of grojec apple
73-80Views:355The Grojec region of Poland is an important region for apple production and accounts for 40 percent of domestic apple production. Apple growers from the region made an attempt to strengthen their competitive position through registering their apples as Protected Geographical Indication (PGI) products. The European Commission’s PGI allows food producers to obtain market recognition and a premium price for their products. Although the Grojec Apple received PGI registration in 2011, little has been done to promote apples with the PGI label. Two important research questions are addressed: 1) Does the Polish market recognize Grojec Apple PGI, and 2) Does the market value Grojec Apple PGI? Logit and regression models are estimated using survey data collected during an International MBA in Agribusiness and Commerce study week in Warsaw. Only 22% of consumers recognize Grojec Apple PGI. Yet, 70% of consumers indicate they are willing to pay more for the product and their average willingness to pay (WTP) premium is 32%. Results indicate use of the PGI label may be effective in improving sales and profit margins for Grojec Apple producers and their affiliated cooperatives. Older consumers are more likely to indicate a WTP premium. Males, smaller households, and consumers less sensitive to apple price indicate a higher WTP premium. An advertising campaign promoting Grojec Apple PGI as a better product may be effective at increasing consumer likelihood to pay more and WTP premium. Although “Grojec” is already familiar to most consumers in central Poland as a region for apples, a Grojec Apple with PGI label would assure consumers they are purchasing apples from the Grojec region and the apples are high quality.
JEL Code: D12, Q13, Q18
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Moral hazard problem for poor under joint forest management programme evidence from West Bengal in Indian context
61-71Views:207This study explores policy framework on current JFM programme, which secures traditional right of local need subject to the carrying capacity of forest, but face moral hazard problem in which Government cannot legally monitor actions against JFM householdswhich live below poverty line and that extract TFPs for their livelihood, and thereby threatening to sustainability of forest, whereas the incentive work opportunities that Government provides them is insufficient for their subsistence. A good incentive fee dependent on their work plus a lump sum fee (subsidy) are required for their livelihood sustenance and sustainability of forest resources.
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European traditional food producers and marketing capabilities: An application of the marketing management process
41-46Views:242The purpose of this paper is to evaluate the marketing management capabilities of SMEs producing traditional food products, in order to analyse the market orientation of SMEs in the food industry. Following the theoretical approach of Market Orientation, our analysis is based on an assessment of the marketing management process. The methodology refers to a survey developed through a questionnaire published on the web, and a sample of 371 firms based in Belgium, Italy, Spain, the Czech Republic and Hungary was used in the analysis. Cluster analysis was applied to find the different levels of market orientation of the firms. The results revealed a certain lack of appropriate skills in marketing management in the firms of the sample, confirming the evidence found in economic literature concerning SMEs. Nevertheless, cluster analysis outlined a group of firms with good marketing capabilities and market oriented, and these represent a great part of the sample (40%). With regard to the stages of the marketing management process, the most problematic are those of planning and implementation, and control and evaluation, highlighting the difficulties SMEs encounter in carrying out coordinated marketing; which appears to be generally characterised by poor organisational capacity.
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Integrated agribusiness in the dairy industry of Ukraine: main characteristics and success factors
59-68Views:261Ukraine belongs to the TOP 20 global producers of milk. Despite its position, the Ukrainian dairy industry is suffering from a permanent deficit of raw milk supplied for processing. on average, in 2007–2011 over half of the produced raw milk did not reach the processors. one of the reasons behind this lasting trend is that the structure of initial production of raw milk is dominated by households (having a share of 80%); the latter produce milk mostly for their own consumption and leftovers are sold at marketplaces where they can get more attractive prices. nevertheless, already today we observe results of largescale investments into the industrial production of milk made in the last few years. This article stresses an important place of the dairy industry in the agriculture of Ukraine, as it provides the population of vital food products, many of which are strategic in the export potential. Authors present essential characteristics of the concepts “agro-industrial integration” and “agroholding”, discloses their role and place in the agrarian sector of the economy, and justifies the necessity of the creation an integrated production in the Ukrainian dairy sub-complex. The study aims at identification and description of latest trends in Ukraine’s dairy market. Moreover, authors present a successful Ukrainian example of Milkiland N.V. as one of the TOP 5 players in the Commonwealth of Independent States (CIS) dairy market.
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A study on consumer habits in the dietary supplements market
5-12Views:1206There has been a continuous increase in the proportion of consumers using dietary supplements worldwide. Evidence based on former surveys suggests that in Hungary more than half of the population buy at least one type of dietary supplement (hereinafter DS). By using secondary research, the authors of the present paper examine the demographic factors determining the consumption of DS on a global scale. Consumption of DS increases with age and is more frequent among women. Consumers with higher qualifications and income tend to buy products containing vitamins and minerals to a greater degree. In the vast majority of cases the purchase and consumption of DS is based on consumers’ personal preferences and decisions, rather than on their physicians’ advice. It has been found that a high percentage of DS consumers probably do not even need any extra nutrient intake. In our primary research (N=1000) the specific attitudes to and characteristics of DS consumption among Hungarian adults are analysed on the basis of on a nationally representative survey. First, we identify the most important reasons which encourage consumers to buy DS. Consumer awareness concerning DS with a particular vitamin and mineral content and of other sources is examined, and we also assess the consumption of the product which is the most popular. The current paper attempts to identify the outlets Hungarian consumers typically buy DS from, and also what resources they use to keep themselves informed about these products. Consumers who admittedly reported (regular) consumption of a certain kind of DS product 6 months prior to the survey are further examined in relation to certain additional issues. The results of our survey provide an accurate picture of the DS consumption habits of the Hungarian population.
JEL CODE: I12, M31
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Future role of agriculture in multifunctional development of rural areas
135-143Views:234In the paper the changes in agriculture in terms of falling share of agriculture in gross domestic product and decrease in the share of persons employed in agriculture in total employment in Poland and selected countries are discussed.The main driver of these changes is a faster pace of development of non-agricultural activities and continually deteriorating relations between the costs of production factors and prices of agricultural products. The rate of growth in labor costs and prices of the means of production for agriculture is much faster than the rate of increase in prices of agricultural products. This causes the decline in profitability of agricultural production which in creases the size of farms. The pace is dependent on the level of economic development of the country. The study also identified trends in the structure of farms, functions and systems of agriculture in the generational perspective.The polarization of the farms will deepen.A strong group of commodity farms and a group of so-called self – subsistence social farms will emerge. Agriculture in Poland will have a dual nature. In addition to the production function and social services agriculture will expand the scope of service functions for the environment and society.
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Tests of differential diesel fuels in engine testing room
59-65Views:280The portion of oil could be estimated 33 % of global primary energy consumption in 2012 (BP, 2012) and its average price – beside the products produced from it as well - significantly increased, unlike the demand for transport which has been reduced. This tendency is expected to remain unchanged in the long run, therefore, there is a great importance for the variety of diesel fuel distributors, in comparison of the ratio value for each of them, and replacing them with biodiesel can be used in the comparison. We executed 3 dynamometer measurements performed to determine three different dealers purchased diesel oil, some economical examinations of the diesel oil retail price, and the use of biodiesel all based on the expected economic studies in the literature studies of extra fuel consumption values. The results of these tests indicate that the differences of consumption between diesel oils can be up to 5 %, the conclusion is that distinctions of diesel oil consumptions are almost the same when we tested the differences between diesel oil and biodiesel. This means we can reach the same result with a high quality biodiesel as with poor quality diesel oil. This also means that– below 20% of mixing ratio we can easily choose by prices alone. Between these prices and products ( D1, D2, D3), we can save 4.8% diesel oil by using D2, 6.2% diesel oil by using D3 compared to D1. There could be a little revolution variance (D2: 2.9-6%, D3: 4.9- 7.1%), but this variance is under 1% so it is negligible.
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Education as a factor of awareness development of organic product consumers
39-42Views:253Organic agriculture provides good quality products, the development of sustainable agriculture, environmental protection and economic efficiency. To develop a habit of consuming organic food, as is case with all habits, it is necessary to educate the younger population, so that they can become accustomed to the fact that organic food is a source of both human health and a healthy environment. Therefore, educational institutions should initiate actions in order to develop awareness of the importance of healthy and safe food (especially fresh fruits and vegetables) among youth. This action has already been carried out in some countries.
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Moral hazard problem for poor under joint forest management programme evidence from west bengal in Indian context
95-105Views:187This study explores policy framework on current JFM programme, which secures traditional right of local need subject to the carrying capacity of forest, but face moral hazard problem in which Government cannot legally monitor actions against JFM householdswhich live below poverty line and that extract TFPs for their livelihood, and thereby threatening to sustainability of forest, whereas the incentive work opportunities that Government provides them is insufficient for their subsistence. A good incentive fee dependent on their work plus a lump sum fee (subsidy) are required for their livelihood sustenance and sustainability of forest resources.
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Analysis of production and competitiveness on small beekeeping farms in selected districts of Serbia
Views:352The study researched the costs and returns on typical small beekeeping farms from five districts in Serbia. On the basis of the field research, data on the number of beehives,type of product, volume of production per beehive and values per measurement unit were collected.In order to demonstrate the competitiveness of various apicultural products, analysis of the available data was performed using analytical calculations. According to the analysis, the labour costs comprise about 49.65% to 64.15% of the variable costs on beekeeping farms in the Raška and Šumadija districts, respectively. Production is most economical on the bee farm in the district of Srem, where every dinar spent in production creates a value of 2.22 dinars, while the farm from the district of Raška is the least economical (1.32 din). Bee farms must reduce labour costs and re-direct their business orientation to other bee products, besides honey, such as pollen, which could be significantly more profitable.
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Cost analysis of pig slaughtering: A Hungarian case study
121-129Views:482The scale of Hungarian slaughterhouses is small in international comparison and the cost of slaughter and cutting a pig of average live weight is relatively high at 16.1-19.4 EUR on average. The aim of this study is to evaluate the cost of pig slaughter and cutting through the case study of a medium-scale plant in Hungary. Based on data from the enterprise, a calculation was performed in relation to the “output” quantity of pig slaughter and cutting, as well as its value and the cost and cost structure of processing. The capacity of the examined plant and its utilisation were analysed and cost reductions were estimated for various increases of output. In 2015, the direct cost of slaughter and cutting was 18.9 EUR per pig for the medium-scale plant which processed 100 thousand pigs. When the purchase cost of pigs is excluded, labour costs accounted for the highest share (30%) of costs, followed by services (29%) and energy costs (21%). For this reason, the level of wages and employer’s contributions has a rather high significance. Analysis showed that significant increases in Hungarian minimum wage and guaranteed living wage in 2017 resulted in an estimated 7% increase in the cost of slaughter and cutting compared to 2015, despite the decrease of contributions. The capacity utilisation of the plant was a low 28% when compared to a single 8-hour shift considered full capacity. The cost of slaughter and cutting was estimated to be reduced to 14.2-17.0 EUR per pig if the plant operated at full capacity. This may be considered a lower bound estimate of cost because there are numerous restricting factors on optimising capacity utilisation, such as: 1) number of live animals available for purchase and related logistics; 2) cooling capacity availability; 3) labour availability; 4) market position of the enterprise and potential for marketing additional pig meat products. Enterprises of this scale are recommended to consider producing more value-added products and, accordingly, investing in product development.
JEL Classification: Q13, Q19
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The marketing strategies of Serbian honey producers
27-31Views:311Serbian honey producers are exposed to the increased international competition of recent years. To face up to the new changes, producers are progressively using diversification strategies, such as direct sales and production diversification. The direct sales strategy allows the producers to increase the product added value, while diversification aims to offer new products to the consumers. The aim of this paper is to analyse the honey marketing strategy of Serbian honey producers. The first part of the paper analyses the structure of production costs, production performances as well as the determinants of the honey supply. In the second part of the paper, analysis is focused on the determinants of direct sales. Finally, in the third part of the paper, diversification strategies are discussed. The data for this research has been obtained on the basis of a representative sample consisting of 84 Serbian honey producers interviewed in 2011 and 2012. The results show that the Serbian honey producers operate with more or less similar production costs and with production performances that do not differ significantly. They use direct marketing for two reasons: firstly, it affords personal contact with consumers, and secondly, they aim to decrease the transaction costs, thereby keeping a higher share of the product’s final value. Offering new products to consumers is an attempt to create additional product demand.
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New types of tourism and tourism marketing in the post-industrial world
41-45Views:318At the end of the 20th century in the most developed countries economy and society went through profound transformation. The emerging post-industrial society can be characterised by the dominance of service industry, more leisure time of the population, higher disposable income and more conscious consumers. These conscious consumers are more and more quality orientated and reject undifferentiated mass products. New customers of tourism and hospitality industry are not only more affluent – so less price conscious – and more quality orientated but they are also seeking activity, participation, fantasy, and experience. These new types of tourists are interested rather in aesthetic aspects of life and are seeking highly differentiated, personalised experience. In the following article the authors, professors of the French ESSCA business school overview theoretical aspects of new, post-Fordist tourism demand and present examples of the new tourism and hospitality products having emerged in the developed countries during the last years.
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L’Antica Pizzeria da Michele as a Case Study of Traditional Speciality Guaranteed and International Franchising
17-23Views:808This work explores the case study of L’Antica Pizzeria da Michele as a best practice of traditional speciality guaranteed and international franchising. Besides being one of the most ancient and successful pizzerias in Naples, da Michele is renowned all over the world for the quality of its raw products, dough processing, and output. In the last years, da Michele also started pioneering the pizza production and commerce industry with an innovative franchising model and a new company appointed to managing this latter business. This work makes use of in-depth interviews and data collected on the field. For such scope, top managers and employees of both the local and the international companies were interviewed. The study finds that da Michele managed to become a benchmark for territorial food products and, more recently, for high-standard franchising, jumpstarting a successful brand-new company and food business project.
JEL Classification: O13, Q13, Q16, Q1
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Small and medium enterprises as development factor of agribusiness in Republic of Serbia
45-49Views:295Development of strong and competitive sector of small and medium enterprises has very important role in process of total transition in Republic of Serbia. This sector should be one of the guidelines of economical development and future, like in developed countries. Within the Strategy of development of SME and entrepreneurship in Republic of Serbia from 2003 to 2008 government of the Republic of Serbia, not accidentally, placed among many sectors which are expected to contribute and boost economical development, increase the employment rate, and realize increased influx of means deriving from export, the priority is on sector of processing of agricultural products. It can be concluded that significant contribution from agriculture to improvement of total economical situation is expected. Accession to EU should be considered primarily not only as the opportunity but serious task in regard to restructuring of the agriculture. However, impeding circumstance,in regard to export ofagricultural-foodproducts,first ofallto EU countries, isthefact that thismarket is under strict protective measures within the policy of agriculture and measures of agrarian protectionism. In such conditions it is very difficult for producers and processors of food to enter such closed markets. Small and medium enterprises are facing the choice of the business strategy:
– to place the existing product on current market;
– to place the existing product on new markets, including export;
– to sell the new product on existing market;
– to place the new product on new markets, including export.
Therefore, based on analysis of domestic market, volume and structure of import and export of agricultural and food products, as well as analysis of food industry and agricultural production in Serbia, it is necessary to define potential programs for small and medium enterprises with production which could be economically efficient and profitable from the aspect of investment.
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Consumer willingness to pay a premium for a functional food in Ghana
51-59Views:367Interest in functional foods has been growing in sub-Saharan Africa due to consumer concerns with diet and nutrition. This paper analyses consumer awareness, perceptions and effects of the determinants of consumer willingness to pay (WTP) a premium for Moringa bread in Ghana. An ordered probit model is employed. The empirical results indicate that consumer knowledge of the nutritional and health benefits of Moringa bread is what matters most to consumers in respect of their WTP a higher premium for the product. Consumers with knowledge on Moringa products are more willing to pay above 50% price premiums for Moringa bread. Fruitful policy recommendations are made in the paper.
JEL code: D12
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The Position Losing of Animal Husbandry in Agriculture
63-66Views:208The author in the presentation deals with the fact that what caused the decline of animal husbandry in contrast with plant production; how this unfavourable ratio of 60:40 could evolve when comparing plant production and animal husbandry What the reason is for the decreasing animal stock; and how the effect of changes in the elements of the economic efficiency such as yields, prices, subsidies, production value, inputs, costs, profits can be evaluated in case of more important animal husbandry enterprises highlighting several significant animal products.
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Structured commodity finance
77-83Views:372Over the past years, the financial stock market – providing the capital demand that is the result of stockpiling and the characteristic strong seasonality observed in the agricultural sector – has increasingly grown and become more “used” by market participants. Its size had reached an annual value of 200 billion HUF, of which agricultural products had received the largest proportion through the various market participants (producers, integrators, traders, feed producers, mills). In the meantime, this market had become part of the competition between the commercial banks that are the largest financers of the sector, due to which the financing credit institutions had undertaken increasing risk levels, with respect to both degree of financing and the VAT financing related to stockholding. The practice of commodity financing by banks display a rather varied picture at present. Considering the exceptional degree of fall in prices and the actions of companies totally disregarding business ethics in 2008, it seems necessary to reveal the full scope of risks inherent in commodity financing. The primary aim of such an exercise is to ensure the prudent operation of refinancing activities for commercial banks. The inherent risks in trade financing – as has been proven by the experiences of previous years – are not found primarily in the goods themselves, but rather at the actual storage facility and also emerge in relation to clients, as well as the inadequate and ineffective risk management of price volatility by the financers. Therefore, the establishment of banking risk management and risk prevention techniques, including the development of new financing procedures become indispensable, minimizing all types of risks that had emerged in previous years.
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Analysis of household crop commercialization in Nigeria
Views:462Nigeria is experiencing a gradual shift from subsistence to commercialized agriculture, thereby increasing involvement and activities at different nodes of agribusiness. Participation of farmers in markets is an important determinant of well-being and development, and one of the pathways towards economic growth. This study analysed household crop commercialization in Nigeria. The secondary data used were the General Household Survey (GHS, 2018) Wave 4. Data were analysed using descriptive statistics, household crop commercialization index (HCCI) and ordered probit regression model.
Mean age of Nigerian farmers was 50.04 years (±15.22), majority (85.68%) were male, married (82.51%), and 72.14% had formal education. Farming is viable in all the geopolitical zones and majority (87.64%) of the farmers were from the rural sector, holding a mean total plot size of 12.61(±15.63) hectares, and planted 3 crops on the average. The most produced crop categories are cereals (46.75%), tubers (20.70%) and legumes (19.00%); legumes and cereals are highest in the North, and tubers in the South. Subsistence households were 32.81% (HCCI=0), only 1.71% of the households were fully commercial (HCCI=100), while semi-subsistence households (0≤HCCI≤100) constitute 65.48%. Years of education (p<0.05) and crop production in North East and North West zones (p<0.01) constrain commercialization, while at p<0.01, crop production in the rural sector and the South zones, and increased land holding are the drivers of household crop commercialization in Nigeria.
Nigerian farming households are mainly semi-subsistence and are diversified in crop production. Nigeria relies more on market participation of the semi-subsistence households, through their marketable surplus, to feed her teeming population and for exports. Further attention on rural infrastructure development in all geopolitical zones and awareness creation on producing market oriented products will increase agribusiness activities. This will generate green decent jobs that will take unemployed youths off the streets of urban centres. This is in tune with the economy diversification bid and the new Nigeria Economic Sustainability Plan of the Federal Government of Nigeria.
JEL CODE – Q13
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Regional identity in rural development: Three case studies of regional branding
19-24Views:534Within the globalizing world, regions and their identities are subjected to great pressure. At present, places are engaged in a process of “territorial competition” in an integrated world economy. The identity of the region can be used as a starting point to brand a region and differentiate it from others. In the regional branding process, the region as a whole becomes a product or brand and offers a “basket” of regional products and services. Regional branding is aimed at creating a more distinctive image or reputation, which helps to increase regional competitiveness. This paper discusses the possibility of regional identity as a mobilizing force for rural development, by studying best practice examples of regional branding. Using the grounded theory approach, we conducted interviews in three case regions:West Cork (Ireland), Groene Woud (the Netherlands) and Pajottenland (Belgium). The study of these cases led to the formulation of critical success factors on the organization of regional branding. Comparative analysis of the cases demonstrates the importance of passionate initiators as ambassadors of the region and the advantage of a well-coordinated internal network in the region. Next to that, the internal marketing of the region is considered an important critical success factors.
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HOUSEHOLDS’ FOOD CONSUMPTION BEHAVIOUR DURING COVID-19 PANDEMIC: EVIDENCE FROM RURAL HOUSEHOLDS IN SOUTH AFRICA
Views:300The food consumption behaviour of households has been affected by the lockdown restrictions that were implemented to reduce the COVID-19 infection rate. This study was aimed at analysing the food consumption behaviour of rural households during the COVID-19 pandemic in South Africa. To achieve this, a simple random technique was used to collect data from 120 in Merry Pebble (MP) Stream Village. Thereafter, an Ordered Probit Model was used to examine the extent to which households have increased, decreased or maintained the same quantity of food consumed during COVID-19. The results indicated that 46.7% of the rural households had consumed less food during COVID-19 pandemic, 32.5% consumed about the same amount of food, and 20.8% consumed more food. The variables that contributed towards a decrease in food consumption are employment status, household size, loss of income, and social relief grants. On the contrary, bulk buying and food parcels had stabilised food consumption, while the number of employed people in a household and food bought from restaurants contributed towards an increase in food consumption during COVID-19 pandemic. With regard to consumption behaviour per food item, fresh produce, meat, snacks and fast food were consumed less during COVID-19, while there was a constant consumption in dairy products, and an increase in consumption of canned food, frozen food, prepared food, grains and water. The study recommends that the government should continue with the economic and social relief programmes that were created during COVID-19, as they play an important role in increasing and stabilising food consumption by rural households.
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Country-specific determinants of horizontal and vertical intra-industry agri-food trade: the case of Bulgaria and Romania
69-75Views:249The article analyses patterns and country-specific determinants of agri-food trade of Bulgaria and Romania with the European Union. As literature focusing on agricultural aspects of the topic is limited, the paper seeks to contribute to the literature by providing up to date results and suggestions as well as by identifying the determinants of horizontal and vertical intra-industry trade of the Bulgaria and Romania after EU accession. Results suggest that intra-industry agri-food trade is mainly of vertical nature, referring to trade of different quality products. Results verify that determinants of horizontal and vertical IIT are similar and suggest that economic size and FDI are positively, while factor endowments and distance are negatively related to both sides of IIT. Results are mainly in line with the majority of empirical literature in the field.
JEL code: Empirical Studies of Trade – F14
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Farmers’ experience in adoption and usage of ICT solutions for agriculture in the Republic of Macedonia
25-30Views:439The adoption of new of Information and Communication Technologies (ICTs) in farming activities becoming crucial for developing countries in order to meet the challenges of rapidly growing populations, urbanization and arable agricultural land declination. Because of it, each farmers’ organization or farmer has to concern their agricultural products and services more towards modernized and ICT related routine. The attempt has been made to analyze the reaction of the Macedonian farmers towards ICTs as a source of reliable and timely information about e-banking, online purchasing/selling, marketing, input and output optimization, increased revenue, remote farm management process etc. Semi-structured questionnaire was used for interviewing 132 semi-experienced and experienced farmers that use ICTs as sample for the research. The data were analyzed using appropriate statistics tool like correlation and Rank Based Quotient (RBQ). The findings showed that farmers stressed the cost of ICTs, lack of training, trust level in the government institutions, and lack of ICT infrastructure are thresholds for ICTs adoption and use in agriculture. This research contributes to understand the adoption and use of ICT, identify the constraints associated with ICT use and propose recommendations towards the improvement of ICTs for agriculture in the Republic of Macedonia.
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A comparison of the Hungarian mangalitza and dutch organic pork chains
73-76Views:262The aim of this paper is to present the Hungarian mangalitza pig and Dutch organic pig supply chains and, in interrogating the differences between the two sectors, to make suggestions for the efficient operation of the Hungarian mangalitza breeding sector. The information about the two was sourced by a depth interview and literature reviews. It is established that there are few similarities between the two segments. In both sectors, the pigs are kept outdoors in large paddocks, there are also National Associations: in Hungary, the Association of Mangalitza Breeders (NAMB), in The Netherlands, the Organic Pork Growers. They hold a general meeting every year, where they discuss issues such as volume, quality, price, marketing and the future challenges and opportunities. There is strong demand both for the mangalitza and also for Dutch organic pork products on foreign markets. The main difference between them is their information systems. In The Netherlands, information flows via FarmingNet, but in the mangalitza sector, no such system exists. Yet, such a system would represent a breaking point for the adequate flow of data and efficient production for the NAMB, because then, Hungarian farmers would be forced to supply data.
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The most relevant factors and trends in energy cooperation between Kazakhstan and China, focused on renewable energy sources (RES)
Views:726This paper analyses the good political and legal environments, mutually beneficial strategic policy, along with level of economic development and growth, superior geographical conditions and cultural integration degree of the important effecting factors of the energy cooperation between Kazakhstan and China. By using the main points listed above this article refers to related trade and investment theories, and it’s divided into two aspects: Kazakhstan's export of Chinese energy products with time series data 1998-2014 and China's investment in Kazakhstan's energy sector with time series data 1998-2016 to construct the vector autoregressive model (VAR).We selected relevant variables and data to construct an econometric model from the perspectives of trade and investment to make an empirical analysis on the influencing factors of energy cooperation between Kazakhstan and China. Our results show that China's demand for large-scale market and for opening to the outside world as well as Kazakhstan’s great energy potential are the most important factors their cooperation. It can be stated that in our days Kazakh legislation is suitable for promoting the Chinese energy investments, but in the long run it would be beneficial to mobilize national capital especially in RES investments and research. In the end, we found the most important reserves in competitiveness of electricity and heat (both from fossil and renewable energy sources) are power grid consolidation and waste heat utilization in the short run.
JEL CODE: F14; Q43
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