Abstract
In this paper, we investigated the level of competitiveness of the processed food sector of the Danube region countries, in order to show the existence of comparative advantage and the correlation of exports. We used the Balassa (RCA–revealed comparative advantage) index and TPI (trade performance indexes). At first, using the Pearson and Spearman index, we examined the existence of correlations between the processed food sector of the Danube countries. Then, we applied the Least Significant Difference (LSD) test to further compare the value and answered the question: between which Danube countries are there significant differences? With the study, we found that the distribution of the RCA index in Bosnia and Herzegovina, Hungary, Moldova and Slovenia deviates from normality. We also found the existence of a strong correlation of the RCA index of the Czech Republic with Romania, Hungary with Moldova and Serbia, Moldova with Serbia and Bulgaria with Ukraine. Finally, we concluded that the development of trade in the countries of the Danube region requires the participation of all relevant interest groups and could play an important role in providing faster economic development, that is in achieving sustainable development of the countries, with the sustainable use of available resources.
Highlights
The Danube region consists of member states, candidate countries and countries in the process of obtaining candidate status for EU membership
We have noticed an increase in the value of exports per capita in 2012 when compared to 2005, which is consistent with the increase in RCA values in the Czech Republic and Hungary
A high value of market diversification is present in Bulgaria and Germany, whereas an increase of the competitiveness effect is present in Bosnia and Herzegovina, Moldova, Slovakia, Bulgaria, Hungary and Romania, Table 1
Summary
The Danube region consists of member states, candidate countries and countries in the process of obtaining candidate status for EU membership. This region is characterized by an increase in the number and the migration of the population, in international trade and demand for high quality agricultural and food products, in industrialization and in urbanization. In the achievement of the goals of the common comprehensive strategy for the Danube region countries, the inclusion of the Republic of Serbia in the preparation of this strategy is of special significance. The countries of the Danube region, under the pressure of globalization, have in front of them the challenge of creating favorable conditions for investment and development of new forms of business, in order to be more competitive. Creating a good business environment and its continuous improvement, in a word, sustainable business, are a prerequisite for sustainable engagement in international trade
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