Analysis of the trade relations between the Republic of North Macedonia and Great Britain
Keywords:
Competitiveness, Revealed comparative advantage, Trade
Abstract
This paper’s goal is to identify the sectors in which the Republic of North Macedonia has a comparative advantage in terms of its trade relations with Great Britain. Both Revealed Comparative Advantage and Revealed Symmetric Comparative Advantage methodologies had been used in the empirical analysis made during the time period of 2009-2019. The results of the analysis point to the fact that the Republic of North Macedonia had a continuous comparative advantage in the category of miscellaneous manufactured articles in the course of the analysed period, which was mainly resulting from the export of clothes and other linen things, and it was also present in the category of crude materials, except fuel owing to the export of metal ore including metal-containing residues. In 2010, it was evidenced a comparative advantage in the category of chemical products. According to Hinloopen and Marrewijk classifications, the calculated comparative advantage of the Macedonian export in the British market varies from weak to moderate whereas, in the course of two time periods (2010 and 2013), it was evidenced a strong comparative advantage in the category of crude materials, except fuel.
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References
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3. Bellora, C., Emlinger, C., Fouré, J. & Guimbard, H. (2017), Research for AGRI Committee, EU – UK agricultural trade: state of play and possible impacts of Brexit, European Parliament, Policy Department for Structural and Cohesion Policies, Brussels [Online]. Available from: EU - UK agricultural trade: state of play and possible impacts of Brexit (europa.eu) [Accessed: 5 January 2021]
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5. Dalum, B., Laursen, K., & Villumsen, G. (1998). Structural change in OECD export specialisation patterns: de-specialisation and ‘stickiness’. International Review of Applied Economics, 12(3), 423-443.
6. Gupta, R. (2015). "FYR Macedonia: Supplier Development Program Analytical Note, Ascending the Global Value Chain by Developing Linkages among Small and Medium-Sized Enterprises (SMEs) and Multinational Corporations (MNCs)." Washington, DC: World Bank.
7. Hinloopen, J., & Van Marrewijk, C. (2001). On the empirical distribution of the Balassa index. Weltwirtschaftliches Archiv, 137(1), 1-35.
8. IMF (2015). Former Yugoslav Republic of Macedonia. Selected issues. [Online]. Available from https://www.imf.org/external/pubs/ft/scr/2015/cr15243.pdf [Accessed: 12 December 2020]
9. Kostoska, O. (2010). Revealed comparative advantage and competitiveness of the Macedonian economy. International Conference “The Economy and Business in Post-Recession”. University “St. Kliment Ohridski” - Bitola, Faculty of Economics - Prilep, Prilep, Macedonia.
10. Kowalski, P. (2011). Comparative advantage and trade performance: Policy implications (No. 121). Paris: OECD Publishing.
11. Liesner, H. H. (1958). The European common market and British industry. The Economic Journal, 68(270), pp. 302-316.
12. OECD. Publishing. (2008). Defining and Strengthening Sector Specific Sources of Competitiveness in the Western Balkans. [Online]. Available from https://wbc-rti.info/object/document/7699 [Accessed: 10 May 2020]
13. OECD. Publishing. (2009). Sector specific sources of competitiveness in the Western Balkans: recommendation for a regional investment strategy. [Online]. Available from https://books.google.mk/books?id=rEpBBIZpBQMC&pg=PA83&lpg=PA83&dq=revealed+comparative+advantage+of+the+Republic+of+Macedonia&source=bl&ots=a5FSAh-EiX&sig=k0DfLyyuylJ_72lmgyymaOD7gUA&hl=mk&sa=X&ved=2ahUKEwjoqP-kjZfcAhXrJJoKHWZUBoYQ6AEwEXoECAkQAQ#v=onepage&q=revealed%20comparative%20advantage%20of%20the%20Republic%20of%20Macedonia&f=false [Accessed: 20 December 2020]
14. OECD. Publishing. (2019). Unleashing the Transformation Potential for Growth in the Western Balkans. [Online]. Available from http://www.oecd.org/south-east-europe/programme/Unleashing_the_Transformation_potential_for_Growth_in_WB.pdf [Accessed: 20 December 2020]
15. Porter, M. E. (1998). The Competitive Advantage of Nations. Free Press New York.
16. Ramadani, N. & Madzova, V., "Trends and Challenges of Export Performance in The Republic of Macedonia" (2018). UBT International Conference, 2018, pp.11-125.
17. Springford, J., & Tilford, S. (2014). The Great British trade-off: The impact of leaving the EU on the UK’s trade and investment. Centre for European Reform. [Online]. Available from http://www.cer.eu/sites/default/files/publications/attachments/pdf/2014/pb_britishtrade_16jan14-8285.pdf [Accessed: 17 February 2021]
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19. The World Bank Group. (2017). Positioning FYR Macedonia for the global economy: the impact of reforms and investment promotion in the automotive components manufacturing [Online]. Available from https://openknowledge.worldbank.org/bitstream/handle/10986/29427/123752.pdf?sequence=4&isAllowed=y [Accessed: 1 February 2021]
20. Vollrath, T. L. (1991.) ‘A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage.’ Weltwirtschaftliches Archiv 127(2), pp. 265–80.
21. Yeats, A. (1985). ‘On the Appropriate Interpretation of the Revealed Comparative Advantage Index: Implications of a Methodology Based on Industry Sector Analysis.’ Weltwirtschaftliches Archiv 121 (1), pp. 61–73.
Published
2021-10-25
Section
Economics (Microeconomics, Macroeconomics, International Economics)
