ANALYSIS OF THE TRADE RELATIONS BETWEEN THE REPUBLIC OF MACEDONIA AND THE REPUBLIC OF ALBANIA

Abstract

Albania is included in the Republic of Macedonia’s group of trading partners. Although
the statistical data does not show a big number in terms of the foreign trade, yet the
same number has increased itself over the past few years as a result of the trade
liberalization and abolition of customs duties in relation to both countries’ goods. Taking
this fact into consideration, this paper makes an analysis of the value, dynamics, and
structure of the foreign trade between the Republic of Macedonia and the Republic of
Albania for the time period of 2006-2015. It also analyzes the competitiveness of
Macedonian products at the Albanian market so that the product categories with a
comparative advantage can be determined by using the Balassa Index and the Standard
International Trade Classification. The results of the analysis point to the fact that the
Republic of Macedonia has a comparative advantage in the export of categories of food,
animal and vegetable oils, fats and waxes, and also in the export of chemical products .