Moldova Trade Study : Note 1. Analysis of Trade Competitiveness
As a small economy, Moldova’s growth and development prospects are closely related to its performance in international and regional markets. In this report the authors have looked at the export performance and competitiveness of the Moldovan econom...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/03/26075752/moldova-analysis-trade-competitiveness http://hdl.handle.net/10986/24042 |
| Summary: | As a small economy, Moldova’s growth and
development prospects are closely related to its performance
in international and regional markets. In this report the
authors have looked at the export performance and
competitiveness of the Moldovan economy. This report
provides an overview of Moldova’s trade competitiveness. Its
objectives are twofold: (i) to present a comprehensive
analysis of Moldova’s recent trade performance and (ii) to
identify policy measures and interventions that can enhance
the competitiveness of Moldova’s export firms and the value
added of their exports. The report is divided into two main
parts. Part one contains an exports outcome analysis. It
assesses export performance along four dimensions that
contribute to form a comprehensive picture of the
sustainable competitiveness of the export sector, including
(i) the level, growth, and market share performance of
existing exports (the “intensive margin”); (ii)
diversification of products and markets (the “extensive
margin”); (iii) the quality and sophistication of exports
(the “quality” margin); and (iv) the survival of export
flows (the “sustainability margin”). Part two investigates
constraints on Moldova’s competitiveness, focusing
specifically on a series of supply-side factors, such as the
role of backbone and input services and utilities, and
access to finance; and the business environment,
particularly government regulations affecting trade and
governance and institutional quality. The rest of the report
is structured as follows: Section two examines overall
trends in trade flows, including the growth of exports and
imports, the degree of trade openness, and the recent
evolution in foreign direct investment flows. In Section
three, the authors concentrate on export outcomes, analyzing
the sectoral composition, the growth orientation, and degree
of diversification of Moldovan exports. The authors also
analyze the evolution in the quality and sophistication of
exports and the survival of export relationships in
different markets and sectors. In the second part of the
report, the authors look at productivity dynamics of
Moldovan firms in comparative perspective, and then
investigate the impact of access to finance, backbone
services, trade and customs regulations, and corruption on
firm productivity. The authors conclude this report with
policy recommendations to improve Moldova's export
competitiveness and increase the product and market scope,
quality, and sophistication of its export basket. |
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