REGIONAL COOPERATION AND ECONOMIC INTEGRATION
REGIONAL COOPERATION AND ECONOMIC INTEGRATION
REGIONAL COOPERATION AND ECONOMIC INTEGRATION
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2.6. Export similarities<br />
The paper so far has analysed changes of comparative advantages, trade<br />
specialization and export competitiveness. However, now, we discuss the question of export<br />
similarities, analysing whether observed countries have complementary or competitive<br />
export structures.<br />
Bosnia and<br />
Herzegovina<br />
Table 6: Matrix of the ES indicator in 2006<br />
Bosnia and<br />
Herzegovina<br />
Croatia Macedonia Serbia<br />
- 0.10 0.27 0.12<br />
Croatia 0.10 - 0.22 0.17<br />
Macedonia 0.27 0.22 - 0.14<br />
Serbia and<br />
Montenegro<br />
Source: COMEXT, own calculations.<br />
0.12 0.17 0.14 -<br />
The empirical results, displayed in table 1, show that the most similar export structures are<br />
found in Bosnia and Herzegovina and Macedonia. On the other hand, the highest difference<br />
is between Bosnia and Herzegovina and Croatia.<br />
The values of the ES indicator are much closer to 1 than 0, which reveals a conclusion that<br />
the observed countries have complementary export structures.<br />
CONCLUSION<br />
<strong>REGIONAL</strong> TRADE AGREEMENTS <strong>AND</strong> <strong>REGIONAL</strong> <strong>COOPERATION</strong><br />
The period of transition in south-eastern European countries was marked by significant<br />
growth in trade volume and openness of domestic markets. The growth of the openness<br />
and liberalization of markets have favored the dynamic growth of imports in all observed<br />
countries. Apart from Serbia and Montenegro, export growth was somewhat lower<br />
than import growth. All countries face a high level of relative trade deficit. Common<br />
characteristic for all analyzed countries is the existence of comparative advantages in low<br />
value added sectors: base metal, wood, textiles, footwear. A similar situation is found in<br />
terms of competitiveness. In all observed countries agricultural and textile sectors showed<br />
the most favorable position to the EU markets. In the group of observed countries Croatia<br />
has the highest level of competitiveness to EU 25 markets in each economic sector. Croatia<br />
is specific for its relatively good position in competitiveness of transport equipment. This<br />
could be explained by the significant value in the export of the shipbuilding industry. The<br />
analysis of trade specialization leads to the conclusion that the great majority of products<br />
in which the observed countries realize the highest values of the RUV indicator are related<br />
to raw materials or labour-intensive products. At the same time, a common characteristic<br />
for all countries is the domination of horizontal specialization and vertical specialization<br />
with low value added products in trade structures. Intra-industry trade prevails in low value<br />
added sectors (base metal, textiles, footwear, skins and leather) and inter-industry trade<br />
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