Analysis of the Trade Relations between Republic Of Macedonia and Republic of Kosovo

Abstract

Macedonia confines itself to traditional markets, and there are not often major changes among our largest trading partners. The greatest part of the products we export ends up in the EU, and a smaller one in the countries of the Western Balkans. It is interesting that out of the first ten largest trading partners, we have a surplus only in the trade with Germany and Kosovo. Taking into account the fact that Kosovo is an important foreign trading partner of the Republic of Macedonia, in this paper it has been made an analysis of the value, dynamics and structure of the foreign trade between the Republic of Macedonia and the Republic of Kosovo for the time period of 2009-2013. It has been also analyzed the competitiveness of Macedonian products at the Kosovan market so that the product categories with a comparative advantage can be determined. The results of the analysis point to the fact that according to the Standard International Trade Classification, the Republic of Macedonia has a comparative advantage in the export of most of the product categories, out of which there have been particularly highlighted the raw materials, the chemical products and the products classified by the type of the material.