Development trends of Bosnia and Herzegovina’s agri-food export specialization

Abstract

Agri-food export is a significant contribution to the farmers’ budgets as well as a driving force of the economy. The present report represents an assessment of specialization in agri-food products exported by Bosnia and Herzegovina in trying to display its development trends in trade with the rest of the world and EU during 2005–2016. The aim of this study is to evaluate the characteristics of specialization in agri-food products’ export, revealing the developmental features of export structure, concentration, diversification, comparative advantage in EU and world markets. In BiH’s agri-food export structure, the leading 2-digit product group “prepared foodstuffs, beverages” represented more or less 50% of BiH’’s total agri-food export for the whole period. During the considered period, the volumes of exported agri-food goods to world markets increased faster than export to EU. Also, the study revealed that BiH’s export to the rest of the world demonstrated a higher level of specialization in agri-food products as well as a greater diversification. Sufficiently diversified export composition is economically important for local producers to supplement their income and ensure their economic survival. The structure of BiH’s agri-food export was sufficiently similar comparing the trade of the country with the trade of the rest of the world. This and the long list of products with higher comparative advantages as well as their positive trends in EU case suggest that the country has a potential to develop its export and more effectively compete in EU markets