MARKET ORIENTED APPROACH OF REVEALED COMPARATIVE ADVANTAGE IN INTERNATIONAL TRADE

Market oriented relative comparative trade advantage (MORTA) represents new approach to a widely accepted model of revealed comparative advantage (RCA) presented for the first time in this paper. The applied model was used in the analysis of agro-food trade in order to identify changes in the level of relative comparative trade advantage between the EU and Serbia before and during the implementation of the Stabilization and Association Agreement with the EU (2004-2013) on the basis of Eurostat data and data of the Statistical Office of the Republic of Serbia. The analysis aims to show whether Serbia and the EU, each on their side, were able to take advantage of the trade liberalization, especially in relative terms. The research results show that Serbia in terms of trade liberalization with the EU manages to secure the growth of the product with relative comparative trade advantage, but on the other side EU fails to largely use preferential status in trade with Serbia.