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Romanian foreign trade after Brexit - impact, main challenges and limits

Author

Listed:
  • Elena BANICA

    (National Institute of Statistics, Romania)

  • Valentina VASILE

    (Institute of National Economy-Romanian Academy,Bucharest, Romania)

Abstract

The Romanian foreign trade has significantly changed after 1990. The privatization of state companies, the economic restructuring and the EU a1ccession had impacted not only on the size and export diversity but also on the trade structure and the commerce routes inside and outside EU single market. The paper presents trade relation of Romania with the UK in the context of the single market and analyses the Brexit impact on the foreign trade, by type of capital (domestic vs ISD), of activity (inward processing) and product technology. We demonstrate the impact of Brexit on export performance by groups of companies’ levels and some related consequences for national foreign trade model and economic performance. Romania constantly registered in the last decades a trade balance surplus with the UK and we examine the profile and peculiarities of the bilateral relations. Main conclusions are focused on export sustainability and competitiveness.

Suggested Citation

  • Elena BANICA & Valentina VASILE, 2017. "Romanian foreign trade after Brexit - impact, main challenges and limits," Romanian Journal of Economics, Institute of National Economy, vol. 45(2(54)), pages 63-86, December.
    • Handle: RePEc:ine:journl:v:45:y:2017:i:54:p:63-86
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    References listed on IDEAS

    as
    1. Dhingra, Swati & Ottaviano, Gianmarco I. P. & Sampson, Thomas & Reenen, John Van, 2016. "The consequences of Brexit for UK trade and living standards," LSE Research Online Documents on Economics 66144, London School of Economics and Political Science, LSE Library.
    2. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
    3. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    4. Elena Banica & Valentina Vasile, 2017. "Foreign trade impact on employment efficiency – an analysis using R," Romanian Statistical Review, Romanian Statistical Review, vol. 65(4), pages 111-127, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Brexit; foreign trade; export map; export sustainability; FDI; high-tech products.;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • N47 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Africa; Oceania

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