The role of country’s institutions in the valorization of potential the liberal foreign trade policy - The case of the Republic of Moldova

Abstract

Implementation of Foreign Trade Agreement between RM and EU is on the government agenda, beginning with the moment of ratification. The valorization of the economic potential of this agreement can be provided by strong state institutes and should be realized through the elaboration of adequate mechanisms and policies. They are related first of all to the deepening trade between partners. The purpose of this paper is to assess the extent to which the institutes correspond to an ambitious agenda for the implementation of reforms, as well as are prepared to use the adequate economic mechanisms and policies to manage and adapt to contemporary trends in the international trading system. The novelty of the research is exploring the measure of the institutional competitiveness of country's economy in the period 2011-2017, in the correlation with the methodology of the World Economic Forum. At present stage of development the competitiveness of the economy of Moldova is largely predetermined by the performance of institutions both public and private, that study found one of the most problematic sectors. The implementation of reforms in the foreign trade sector, which began with accession to the WTO, was not supported by reformation of other economic sectors. Among the main obstacles are the following: the weakness of state institutions, inconsistency and non completing the government policy reforms started, the lack of political will, the high level of corruption etc. Results of this study can be used for the elaboration of set the appropriate economic policies.

Keywords

• trends in international trade
• GVC
• institutional competitiveness