Trends in the foreign trade of the Republic of Moldova in connection with the signing of new free trade agreements

Abstract

The purpose of this article is to present the evolution of Moldova's foreign trade and highlight the changes that took place in 2010-2018, including the changes following the signing of free trade agreements with the EU and Turkey. The article identifies the groups of goods in which the Republic of Moldova has revealed comparative advantage in trade with China, Egypt and EFTA countries in the context of free trade negotiations with these countries. The Comparative Advantage Index Bela Balassa RCA (export specialization index) was used for this purpose. The study is based on the following research methods: study of documents, analysis and synthesis of content, data modeling in Excel. National and international statistical data, publications from specialized editions were used as informational support. The research results show that free trade agreements contribute to the growth of the country's foreign trade, as well as to the development of economic and trade relations with new partners. At the same time, export flows are not stable in different markets. Agriculture and the agri-food sector remain the most important driving force of Moldova's foreign trade. There is a need for structural diversification of Moldovan exports, the creation of products related to the implementation of new knowledge, inventions and technologies. JEL: F14, F15