IMPACT OF THE RUSSIAN TRADE BANS ON LITHUANIAN PORK SECTOR
Over the last decade Lithuanian pork sector faced dramatic changes, where trade relations with Russia had an important role. The research aims at estimating the effects of the trade ban imposed by Russia on Lithuanian pork sector caused by the outbreak of the swine fever. The aim is achieved by analyzing the transmission of price changes between Lithuanian and Russian pork markets by using the Autoregressive Distributed Lag Model (ARDL). The results indicate significant decrease in transmission of price changes, both in short- and long-run, from Lithuanian pig prices towards Russian domestic prices during the ‘2011 ban’ regime and further worsening of the situation during ‘2014 ban’ regime that was mainly caused by the isolation of the Russian market and lack of export diversification strategy from the Lithuanian side.