REGIONAL COOPERATION AND ECONOMIC INTEGRATION

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