Export Performance of Southeastern European Countries

Over the last decades, the European Union (EU) member states have been subject to intensive globalization and international competition, a fact that poses both challenges and opportunities. Additionally, the recent global financial crisis implied a fall in output across economies that was accompanied by a severe contraction in international trade. As a result, countries and firms have had to adjust and actively participate in this new market environment. This paper examines the export dynamics of four Balkan EU member states over the period 1999–2014. The results revealed that there is a tendency for an increase in exports, that persistent trade deficits have decreased since 2008 and that the share of high and medium-high technology manufactured goods has increased, particularly in the case of Romania. The results also indicate some specificities of export performance of Greece, Croatia and Bulgaria, which have had a trade surplus for services throughout the period, suggesting the importance of the tourism sector. We further discuss the main factor that could contribute to enhancing the competitiveness of European countries. Higher foreign demand is found to lead to more exports as is a depreciation in the real foreign exchange rate, although price and income elasticities vary across studies and according to the estimation technique adopted. The evidence also suggests that non-price factors (such as quality, variety, innovation and institutions) are value drivers of exports.