REGIONAL COOPERATION AND ECONOMIC INTEGRATION

CEFTA-2006 TRADE COOPERATION
widely treated summary measures of concentration, such as Herfindahl – Hirschman (HH)
index, as well as the one developed by Hall and Tideman (1967) and Rosenbluth (Niehans,
1961). 5
Figure 6: Indices of exports and imports concentration
Source: NBRM and own estimates
The both indices suggest that country is heavily dependant on a limited number of sectors
the same as trading partners that implies exports instability and vulnerability to business
fluctuations and the terms of trade swing. What is more of a concern is the upward tendency
after 2004, with some deviations within the last year. Thus, the main drivers of Macedonian
export performances are principally the primary products (beverages and tobacco, iron
and steel, petroleum products and clothing) which account for around 70% of the total
exports. These sectors in aggregate level create surplus in the foreign trade, which means
that coverage ratio is to be above the average. Some important sectors, however, record
deterioration in the value of particular indicator in 2008 if compared with 1998 (textile
fibers, metalliferous ore, scarp and non-ferrous metal). The recovery of iron and still and
certain refined oil products are to be found in the renewal of the large steel factory in 2004,
as well as the removal of Serbian protectionist barrier to imports. Yet, exports of petroleum
products have decreased for the first time in 2007 owing to the prohibition imposed by
UNMIC (USAID, Report on foreign trade, 2008). In 2008, a certain decrease have been
noticed in exports of iron and steel down to the reduction of global consumption, as well
as the negative shifts in metal price. Quite the reverse, imports by sectors have rather than
5 The Rosenbluth index and Gini coefficient are related due to the similarity of Lorenz curve and the concentration
curve.
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