IDEAS home Printed from https://ideas.repec.org/a/ine/journl/v45y2017i54p63-86.html
   My bibliography  Save this article

Romanian foreign trade after Brexit - impact, main challenges and limits

Author

Listed:
  • Elena BANICA

    (National Institute of Statistics, Romania)

  • Valentina VASILE

    (Institute of National Economy-Romanian Academy,Bucharest, Romania)

Abstract

The Romanian foreign trade has significantly changed after 1990. The privatization of state companies, the economic restructuring and the EU a1ccession had impacted not only on the size and export diversity but also on the trade structure and the commerce routes inside and outside EU single market. The paper presents trade relation of Romania with the UK in the context of the single market and analyses the Brexit impact on the foreign trade, by type of capital (domestic vs ISD), of activity (inward processing) and product technology. We demonstrate the impact of Brexit on export performance by groups of companies’ levels and some related consequences for national foreign trade model and economic performance. Romania constantly registered in the last decades a trade balance surplus with the UK and we examine the profile and peculiarities of the bilateral relations. Main conclusions are focused on export sustainability and competitiveness.

Suggested Citation

  • Elena BANICA & Valentina VASILE, 2017. "Romanian foreign trade after Brexit - impact, main challenges and limits," Romanian Journal of Economics, Institute of National Economy, vol. 45(2(54)), pages 63-86, December.
    • Handle: RePEc:ine:journl:v:45:y:2017:i:54:p:63-86
    as

    Download full text from publisher

    File URL: http://www.revecon.ro/articles/2017-2/2017-2-3.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dhingra, Swati & Ottaviano, Gianmarco I. P. & Sampson, Thomas & Reenen, John Van, 2016. "The consequences of Brexit for UK trade and living standards," LSE Research Online Documents on Economics 66144, London School of Economics and Political Science, LSE Library.
    2. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
    3. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    4. Elena Banica & Valentina Vasile, 2017. "Foreign trade impact on employment efficiency – an analysis using R," Romanian Statistical Review, Romanian Statistical Review, vol. 65(4), pages 111-127, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Charlotte Emlinger & Viola Lamani, 2020. "International trade, quality sorting and trade costs: the case of Cognac," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(3), pages 579-609, August.
    2. repec:spo:wpmain:info:hdl:2441/3lmdaefcr886ao8sahjmam30ke is not listed on IDEAS
    3. Gao, Yue & Whalley, John & Ren, Yonglei, 2014. "Decomposing China's export growth into extensive margin, export quality and quantity effects," China Economic Review, Elsevier, vol. 29(C), pages 19-26.
    4. Lucian Cernat, 2016. "Toward “Trade Policy Analysis 2.0”: From National Comparative Advantage to Firm-Level Trade Data," ADB Institute Series on Development Economics, in: Ganeshan Wignaraja (ed.), Production Networks and Enterprises in East Asia, edition 1, chapter 0, pages 21-31, Springer.
    5. Patrick Bisciari, 2019. "A survey of the long-term impact of Brexit on the UK and the EU27 economies," Working Paper Research 366, National Bank of Belgium.
    6. Thomas Chaney & Ralph Ossa, 2013. "Market Size, Division of Labor, and Firm Productivity," SciencePo Working papers hal-03579667, HAL.
    7. Beverly Lapham & Hiroyuki Kasahara, 2005. "Import Protection as Export Destruction," 2005 Meeting Papers 528, Society for Economic Dynamics.
    8. Head, Keith & Mayer, Thierry, 2014. "Gravity Equations: Workhorse,Toolkit, and Cookbook," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 131-195, Elsevier.
    9. Shon M. Ferguson, 2015. "Endogenous Product Differentiation, Market Size and Prices," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 45-61, February.
    10. Chaney, Thomas & Ossa, Ralph, 2013. "Market size, division of labor, and firm productivity," Journal of International Economics, Elsevier, vol. 90(1), pages 177-180.
    11. Landesmann, Michael A, 2022. "Luigi Pasinetti on growth and structural change in international economic relations," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 556-564.
    12. Békés, Gábor & Hornok, Cecília & Muraközy, Balázs, 2016. "Globalization and the markups of European firms," Kiel Working Papers 2044, Kiel Institute for the World Economy (IfW Kiel).
    13. Patricia Augier & Olivier Cadot & Marion Dovis, 2013. "Imports and TFP at the firm level: the role of absorptive capacity," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(3), pages 956-981, August.
    14. Antonio Navas & Davide Sala, 2015. "Innovation and Trade Policy Coordination: The Role of Firm Heterogeneity," The World Economy, Wiley Blackwell, vol. 38(8), pages 1205-1224, August.
    15. Sui Sui & Zhihao Yu, 2012. "The Pattern of Foreign Market Entry of Canadian Exporters," Canadian Public Policy, University of Toronto Press, vol. 38(3), pages 341-359, September.
    16. repec:lic:licosd:15905 is not listed on IDEAS
    17. Ardelean, Adina & Lugovskyy, Volodymyr, 2010. "Domestic productivity and variety gains from trade," Journal of International Economics, Elsevier, vol. 80(2), pages 280-291, March.
    18. Besedes, Tibor & Prusa, Thomas J., 2006. "Product differentiation and duration of US import trade," Journal of International Economics, Elsevier, vol. 70(2), pages 339-358, December.
    19. Behrens, Kristian & Murata, Yasusada, 2012. "Trade, competition, and efficiency," Journal of International Economics, Elsevier, vol. 87(1), pages 1-17.
    20. Kim, Daisoon, 2021. "Economies of scale and international business cycles," Journal of International Economics, Elsevier, vol. 131(C).
    21. repec:hal:spmain:info:hdl:2441/1f59r6ssre9eiqb2rso9ui50m2 is not listed on IDEAS
    22. Rasmusen, Eric, 2017. "A model of trust in quality and North–South trade," Research in Economics, Elsevier, vol. 71(1), pages 159-170.
    23. Jaya Prakash Pradhan & Mohammad Zohair, 2015. "Subnational Export Performance and Determinants," Review of Market Integration, India Development Foundation, vol. 7(2), pages 133-174, August.

    More about this item

    Keywords

    Brexit; foreign trade; export map; export sustainability; FDI; high-tech products.;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • N47 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Africa; Oceania

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ine:journl:v:45:y:2017:i:54:p:63-86. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valentina Vasile (email available below). General contact details of provider: https://edirc.repec.org/data/inacaro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.