From East to West: International Trade and Transformations in Moldova’s Agricultural Sector

Abstract

The agricultural sector is crucial to Moldova’s economy, undergoing significant changes due to international trade dynamics, technological advancements and policy reforms. Globalization has expanded agricultural trade, necessitating structural adjustments. Studies highlight the impact of market liberalization on agricultural productivity, with Moldavian farmers facing challenges in technology and capital access. This research examines trends in Moldova’s agricultural trade from 2001 to 2022, using data from the National Bureau of Statistics on 24 HS agricultural commodities. Findings show Moldova’s stronger position in the European market, especially for vegetable products and foodstuffs, supported by favorable trade agreements. In contrast, trade with the Commonwealth of Independent States (C.I.S.) exhibits instability. Competitive strengths for the studied interval are observed in cereals, sugar, and beverages, while fish and oils face disadvantages. Products like trees and meat products have advantages in Europe, while milling products and oils perform well in C.I.S. markets. High intra-industry trade levels are observed in sugar (76.39), live animals (72.22), and other foodstuffs (79.65). To enhance its comparative advantage, Moldova must focus on production capabilities, quality standards, market diversification, and adapting to global trends.

Keywords

• agri-food; competitiveness; inter-industry trade; intra-industry trade.