Competitiveness of wine export from CEFTA countries in the EU market

Abstract

The objective of this paper is to examine the competitiveness of wine export of CEFTA parties (excluding Kosovo), in the period from 2011 to 2020. The CEFTA group exported wine worth a total of 2.3 billion USD during the analyzed period, with significant differences in export value among certain parties. Moldova and North Macedonia generated over 80% of the wine export value. Competitiveness of wine export was analyzed by calculating two sets of indicators. The first set includes three competitiveness indices: revealed comparative advantage index, export specialization index and trade intensity index. The second set of factors relates to the analysis of market share and changes in the market share. With the purpose of identifying causes of changes in the market share, one of them being the competitiveness effect, the authors employed the method of constant market share analysis. The leading exporter, Moldova, although not predominantly focused on the European Union as the main export market, is competitive in the EU market and achieves specialization in exporting wine to the EU market, as well as an increase in trade intensity and market share. Other analyzed CEFTA countries have recorded a decrease in market shares and variable performance regarding export specialization, revealed comparative advantage and trade intensity.