What countries can replace Russia's market for Moldovan products?

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Publishing date: Tuesday, 26 August 2014
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The study assesses the perspectives of alternative export markets for Moldovan products that were restricted in Russian Federation, in order contribute to the optimization of Moldova’s export geography and to reduce the medium term risks.

When identifying the alternative export markets, the study took into account for indicators: (1) share of the respective country in the exports of Moldova, (2) country's share in global imports of the respective product, (3) tarrif (once the Association Agreement with EU enters into force, export tarrifs to the members states will be eliminated for all categories of products), (4) Revealed Comparative Advantage, which is equal to the proportion of the country's exports of a taken good divided by the share owned by that product from a specific country in the world exportrs. A country has comparative advantage if the index is higher than 1, and if RCA is less than unity, the country is said to have a comparative disadvantage. In the case of the products analyzed below, Moldova holds a comparative advantage superior to the proposed export destinations.

 

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The partners from Budgetstories also sketched an infographic for this study:

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Tags: Natalia Chitii

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