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Balance of Comparative Advantages in the Processed Food Sector of the Danube Countries

Author

Listed:
  • Svetlana Ignjatijević

    (Faculty of Economics and Engineering Management in Novi Sad, Cvećarska 2, 21000 Novi Sad, Serbia)

  • Ivan Milojević

    (University of Defense, Military Academy, Pavla Jurišića Šturma 33, 11000 Belgrade, Serbia
    These authors contributed equally to this work.)

  • Gorica Cvijanović

    (Faculty of Biopharming, Megatrend University, M. Tita 39, 24300 Bačka Topola, Serbia
    These authors contributed equally to this work.)

  • Mersida Jandrić

    (Faculty of Agriculture, University of Belgrade, Nemanjina 6, 11080 Belgrade-Zemun, Serbia
    These authors contributed equally to this work.)

Abstract

In this paper, we investigated the level of competitiveness of the processed food sector of the Danube region countries, in order to show the existence of comparative advantage and the correlation of exports. We used the Balassa (RCA–revealed comparative advantage) index and TPI (trade performance indexes). At first, using the Pearson and Spearman index, we examined the existence of correlations between the processed food sector of the Danube countries. Then, we applied the Least Significant Difference (LSD) test to further compare the value and answered the question: between which Danube countries are there significant differences? With the study, we found that the distribution of the RCA index in Bosnia and Herzegovina, Hungary, Moldova and Slovenia deviates from normality. We also found the existence of a strong correlation of the RCA index of the Czech Republic with Romania, Hungary with Moldova and Serbia, Moldova with Serbia and Bulgaria with Ukraine. Finally, we concluded that the development of trade in the countries of the Danube region requires the participation of all relevant interest groups and could play an important role in providing faster economic development, that is in achieving sustainable development of the countries, with the sustainable use of available resources.

Suggested Citation

  • Svetlana Ignjatijević & Ivan Milojević & Gorica Cvijanović & Mersida Jandrić, 2015. "Balance of Comparative Advantages in the Processed Food Sector of the Danube Countries," Sustainability, MDPI, vol. 7(6), pages 1-18, May.
    • Handle: RePEc:gam:jsusta:v:7:y:2015:i:6:p:6976-6993:d:50437
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    2. Jelena Vapa-Tankosić & Vera Miler-Jerković & Dejan Jeremić & Slobodan Stanojević & Gordana Radović, 2020. "Investment in Research and Development and New Technological Adoption for the Sustainable Beekeeping Sector," Sustainability, MDPI, vol. 12(14), pages 1-17, July.
    3. Lucasenco, Eugenia & Ceban, Alexandru, 2020. "Assessement of competitiviness of moldovan agri-food products at the regional level," MPRA Paper 106308, University Library of Munich, Germany.
    4. Matkovski, Bojan & Zekić, Stanislav & Đokić, Danilo & Jurjević, Žana & Đurić, Ivan, 2022. "Export competitiveness of agri-food sector during the EU integration process: Evidence from the Western Balkans," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(1).

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