Wood products export performance in Bulgaria and Romania

This article investigates export performance in wood products in Bulgaria and Romania using Balassa index, relative trade balance (RTB), diversification ratios and other descriptive approaches. The Balassa index suggests that both countries have comparative advantages in the overall wood products. Nonetheless, both countries' comparative advantages have steadily declined over the years. Both product and market diversification ratios indicate that Romania has diversified more than Bulgaria, implying that the latter has been more vulnerable to shocks within its importing countries than the former. As expected, both countries witnessed substantial positive RTB in the overall wood trade, and in eight out of the top ten (8/10) wood product groups traded within the period under study. Romania appears to have added more value to its exported products than Bulgaria. By and large, both countries have performed and remained competitive in their top ten wood product groups in the global markets. Nevertheless, there is a need for more market and product diversification, especially in Bulgaria.