Competitiveness of tobacco and tobacco products: The case of Serbia

Abstract

© 2016, Universidade Federal Rural de Pernambuco. All rights reserved. The objective of this paper is to find the level of international competitiveness of tobacco and tobacco products of Serbia on the international market, as well as on the markets of the EU (European Union) and the CEFTA (Central European Free Trade Association Agreement) countries. In that context, a development in production and trade performances of tobacco and tobacco products is analyzed. According to the main objective of this paper, a methodological framework is based on the usage of relevant indicators which measure comparative advantages of tobacco and tobacco products and, through correlation analysis, the existence of correlation between obtained indices is identified. A level of specialization with the main trade partners, as well as with the international market, is determined by the level of intra-industry trade. Results of this research show that Serbia has achieved permanent growth of the level of comparative advantages in the analyzed period and that tobacco and tobacco products of Serbia have been well integrated with analyzed markets.