Identifying Priority Export Products: Case of the Republic of Moldova

Moldova is an agricultural country that mainly exports raw materials. However, to ensure sustainable economic growth, the country should produce and export goods with high-added value; it is required to increase its export potential. Therefore, the subject of the study is the export of products manufactured in Moldova and its competitiveness. The study aims to determine priority products based on calculating the competitiveness of goods. Moldova faces the task of promoting domestic goods to foreign markets. This problem has worsened due to the severance of economic relations with the countries of the Eurasian Economic Union and the redirection of commodity flows to the European market. Moldova signed an Association Agreement with the EU in 2014. Eight years later, the country received candidate status for EU membership, so this study tests the hypothesis about the positive effect of redirecting exports to the EU market on high-technology exports, as well as the hypothesis about the positive impact of research and development expenditure on ICT goods exports and high-technology exports. The European market is oversaturated. Therefore, when promoting the export of goods, it is necessary to consider that only competitive products can win the competition.