Analysis of the Evolution of Foreign Trade and the Trade Balance of Romania in the Last 25 Years

This study presents the evolution of some important foreign trade`s indicators in the last 25 years of Romania. The work shows the trends and the implications of the overall trade balance and the value indices of external trade or unit value indices for export and imports and attempts to empirically examine the dynamic of these using the time-series data for the period 1994–2018. This research suggests the relationship between the variables that determine the trend of export, import and trade balance for the last two decade in foreign trade of Romania. The empirical results shows that the deficit of overall trade balance is recorded in all years of the period 1994-2018, both FOB / FOB and FOB / CIF prices. Moreover, there exists a situation of foreign trade that has been perpetuating over the last decades as exports of raw materials and little processed materials fail to exceed value imports of processed products, although there have been annual increases in exports but the growth rate did not exceed the growth rate of imports.