Economic analysis of exporting Serbian honey

Abstract

Researching competitiveness of Serbia’s honey sector represents an introduction into a complex issue of dynamic changes with complex heterogenic and long term socio-economic implications. Tracking changes of comparative advantages in export during Serbia’s transition period and accession to the EU is significant for viewing the effects that trade liberalization and integration in international streams have on the sensitive honey sector. The research started from indicators of demand and level of foreign trade in the EU. Quantitative indicators of Serbia’s honey export on European market were shown in order to confirm Serbia’s potential and dominant presence. Research subject of this paper is the analysis of Serbia’s comparative advantage in exporting honey and specialization in international trade with the EU. The Balassa index, Revealed comparative advantages index and Revealed symmetric comparative advantage index were used with the goal to measure the level of Serbia’s comparative advantage, Grubel Lloyd Index and Trade Balance Index were used to measure the specialization level. Research results point to a positive comparative advantage value in exporting Serbia’s honey to EU and inter-industry exchange character.