Tradeflow Study - UNDP Black Sea Trade and Investment Promotion ...

j
j
.
x is the value of total exports of BSEC (i);
x
ij
wj
is the value of total world exports.
An index of more (less) than one indicates a bilateral trade flow that is larger (smaller) than
expected, given the partner country’s importance in world trade. Thus, the trade intensity
index for each individual BSEC Member State gives an interesting insight into the value of
trade of the country within the region in comparison with what should be expected on the
basis of its importance in the region.
Table 8 below displays the results from Trade Intensity index in the BSEC region at the
regional level, and demonstrates a high level of intra-regional trade flow in many sectors
(sectors are identified at HS2 level). There is a particularly high concentration of trade in
BSEC in fabrics and plastic products. Table A7 in annex 1 gives the trade intensity index
values at the level of each individual country. The highest level of trade intensity is recorded
for vegetable and fruit for Azerbaijan, beverages in Georgia and Moldova, and animal and
vegetable fats in Azerbaijan.
Table 8. Trade intensity for Selected Industries in BSEC (2005)
HS2
Trade Intensity
27 Mineral fuels, oils, distillation products, etc 4.0
72 Iron and steel 3.5
85 Electrical or electronic machinery and equipment 5.3
87 Vehicles other than Railway, Parts and Accessories 4.2
84 Machinery and Mechanical Appliances, including parts 6.5
44 Wood and articles of wood, wood charcoal 3.4
73 Articles of Iron and Steel 5.2
48 Paper & paperboard, articles of pulp, paper and board 6.8
39 Plastics and articles thereof 8.1
60 Knitted or crocheted fabric 10.8
Source: Authors calculation based on UNSD Comtrade Statistics, 2006
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