The evaluation of the EU trade with Russia based on the analysis of selected indices: Revealed comparative advantages, intra-industry trade, and trade intensity

Abstract

There have been many geopolitical changes and economic factors that affected the mutual trade between the EU and its main trading partners between the years 2005 and 2016. In the long term, one of the most important trade partners of the EU is Russia. It is a major supplier of energy resources to the EU as well as significant export market for European producers. Even today, when mutual trade relations are negatively influenced by trade-political sanctions, the mutual dependence is undeniable. The submission evaluates the mutual trade between the EU and Russia with the use of selected indices -revealed comparative advantages, intra-industry trade and trade intensity. The analysis of these indicators points to strategic importance of this trade relation. However, if the EU wants to sustain this relation, it should consider how to solve the current tension and after that to strengthen future mutual relations. JEL Classifications: F10, F14, F15

Opportunities for Increasing the Export of Latvia to Ue Countries

“…If the index is greater than 1, trading volumes are greater than a given company's role in the global economy. If it is lower than 1, the lower than might be expected (Kastakova & Baumgartner, 2017). Export ex of more than 1 may be considered more promising partners because the from Latvia to these countries outpaces exports from other countries in issue of this study -the search for (analysis of) potential Latvian export of this article have analysed the flow of trade (imports and exports) between ups of goods, and selected the goods enjoying stable demand in a partner ia happens to export to it.…”

“…If the index is greater than 1, trading volumes are greater than expected based on a given company's role in the global economy. If it is lower than 1, the intensity of trade is lower than might be expected (Kastakova & Baumgartner, 2017). Export partners with an index of more than 1 may be considered more promising partners because the activity of exports from Latvia to these countries outpaces exports from other countries in relative terms.…”