THE COMPARATIVE ADVANTAGE OF EU28 TRADE THROUGH
THE LAFAY INDEX PERSPECTIVE
Adrian Negrea
University of Oradea, Faculty of Economic Sciences, Department of International Business, nr.1, Vasile
Alecsandri street, ap.12, Oradea, Bihor, Romania
Alecsandri street, ap.12, Oradea, Bihor, Romania
DOI: https://doi.org/10.31410/limen.2018.644
4th International Scientific – Business Conference LIMEN 2018 – Leadership & Management: Integrated Politics of Research and Innovations, Belgrade – Serbia, December 13, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Engineering Management – Belgrade, Serbia; Modern Business School – Belgrade, Serbia; Faculty of Business and Management Sciences – Novo Mesto, Slovenia; Faculty of Business Management and Informatics – Novo Mesto, Slovenia; Business Academy Smilevski – BAS, Skopje, Macedonia; BAS Institute of Management, Bitola, Macedonia, ISBN 978-86-80194-15-8
Abstract
EU28 is the one of the biggest trading blocks in the world having bilateral or
multilateral relations through its international agreements, selling its products and services
worldwide. Because of this perspective, it is rational to investigate if the EU28 has a
comparative advantage or a comparative disadvantage with the rest of the world through its
trade relations. The current paper wishes to examine and analyze the imports and export
activities of the main trading block with 106 countries, leading to comparative advantages or
disadvantages through the Lafay Index perspective. All those countries are classified based on
geographical orientation in 8 groups. The statistical data for all of the countries is gathered
from Eurostat based on the Standard International Trade Classification SITC9 and focuses on
the main imports and exports of goods between the main trade block and the eight geographical
regions. The data is processed through the Lafay Index methodology and interpreted. The
conclusions that are going to be drawn from the statistical analysis are going to be formulated
at the end hand-in-hand with certain proposals.
multilateral relations through its international agreements, selling its products and services
worldwide. Because of this perspective, it is rational to investigate if the EU28 has a
comparative advantage or a comparative disadvantage with the rest of the world through its
trade relations. The current paper wishes to examine and analyze the imports and export
activities of the main trading block with 106 countries, leading to comparative advantages or
disadvantages through the Lafay Index perspective. All those countries are classified based on
geographical orientation in 8 groups. The statistical data for all of the countries is gathered
from Eurostat based on the Standard International Trade Classification SITC9 and focuses on
the main imports and exports of goods between the main trade block and the eight geographical
regions. The data is processed through the Lafay Index methodology and interpreted. The
conclusions that are going to be drawn from the statistical analysis are going to be formulated
at the end hand-in-hand with certain proposals.
Key words
EU28, comparative advantage, Lafay Index
