-  42  -

So did ICT total exports falling from US$ 21 million in 1996 to US$ 13 million or by US$ 8 million, which is precisely the amount of the contraction in CIS-destined exports. Similar geographic reorientation can be discerned in automotive network trade, with the recovery in exports mainly due to the increase in EU and CEEC import demand (Table 31).

**Table 31:** _Trade with the EU in ‘producer-driven’ chains in 1996-2003 (in millions of US dollars and percent)_

|||||||||.|Change in<br>2003 over|
|---|---|---|---|---|---|---|---|---|---|
|Product(SITC Revision 2)|1996|1997|1998|1999|2000|2001|2002|2003|2000|
|**A. Automotive Network**<br>||||||||||
|EU-oriented exports of final products and parts ($ million)|36.1|19.0|18.0|17.2|17.0|17.1|18.7|27.3|61%|
|Share of parts in EU-destined network exports (%)|29.3|52.8|58.6|70.7|78.8|66.2|68.6|77.9|-1%|
|Imports of parts ($ million)|45.7|35.8|41.3|44.7|46.2|47.1|66.6|76.7|66%|
|Share of parts in network's imports (%)<br>|22.2|23.9|18.6|20.6|20.9|16.7|19.4|14.8|-29%|
|Imports of parts as % of network's exports (%)<br>**_Memo Items:_**|126|188|230|260|271|276|**357**|281|4%|
|Share of products and parts in Bulgaria's exports (%)|1.6|0.8|0.7|0.7|0.6|0.5|0.6|0.6|0%|
|Share of EU in total network's exports (%)|39.2|23.2|32.1|42.0|40.4|38.6|32.0|47.5|18%|
|Share of new 2004 EU-8 in Bulgaria's exports of network<br>products (%)|16.5|20.6|21.3|16.8|16.3|12.7|**10.7**|13.3|-18%|
|Share in EU15 external imports of network (%)|0.08|0.04|0.03|0.02|0.02|0.02|0.03|0.03|50%|
|of: which parts|0.02|0.02|0.02|0.02|0.02|0.02|0.02|0.02|0%|
|finalproducts|0.05|0.02|0.01|0.01|0.01|0.01|0.01|0.01|0%|
|**B. ICT Network**||||||||||
|EU-oriented exports of final products and parts ($ million)|8.3|11.1|19.0|24.1|23.1|22.2|31.3|55.1|139%|
|Share of parts in total network exports (%)|61.2|37.9|34.1|32.1|53.4|67.0|57.3|33.4|-37%|
|Imports of parts ($ million)|26.9|41.1|54.4|74.4|54.7|119|124|120|119%|
|Share of parts in network's imports (%)|29.2|46.5|37.5|34.2|27.2|38.1|42.4|34.5|27%|
|Imports of parts as % of network's exports (%)|323|369|286|309|237|**535**|395|217|-8%|
|**_Memo Items:_**||||||||||
|Share of products and parts in Bulgaria's total exports (%)|0.4|0.5|0.8|1.0|0.8|0.7|1.0|1.3|63%|
|Share of EU-15 in Bulgaria's total network's exports (%)|28.4|40.6|62.1|70.9|57.3|59.8|46.9|66.8|17%|
|Share of CEEC-8 in exports of network products (%)|8.1|6.7|2.6|**1.6**|2.6|3.6|2.8|3.5|35%|
|Share in EU15 external imports of network (%)|0.01|0.01|0.02|0.02|0.01|0.02|0.02|0.03|200%|
|of: which parts|0.00|0.00|0.01|0.01|0.01|0.01|0.01|0.01|0%|
|finalproducts|0.00|0.01|0.01|0.01|0.01|0.01|0.01|0.02|100%|
|**C. Total 'Producer-Driven' value chains**||||||||||
|Share of above exports in Bulgaria's total exports (%)|2.0|1.3|1.5|1.7|1.4|**1.3**|1.5|1.9|36%|
|<br>Share of EU-15 in exports of networks (%)|36.6|27.5|42.7|55.1|48.7|48.3|39.9|58.9|21%|
|Share of CEEC-8 in Bulgaria's exports of networks (%)|14.4|17.1|14.7|9.9|9.6|8.5|6.5|7.5|-22%|
|<br>Share in EU15 external imports of network (%)|0.03|0.02|0.02|0.02|0.02|0.02|0.02|0.03|50%|
|of which: parts|0.01|0.01|0.01|0.01|0.01|0.01|0.02|0.02|100%|
|final products|0.02|0.01|0.01|0.01|0.01|0.01|0.01|0.02|100%|

Source: Computations based on UN COMTRADE Statistics.

Third, in line with trends observed in other CEEC-10 economies (Kaminski 2004), there has been a shift towards specialization in automotive parts and ICT final products. Exports of the latter practically disappeared. While exports of motor vehicles accounted for 15 percent of automotive network’s EU-destined sales in 1996, this share fell to 2 percent in 2003. On the other hand, the share of other parts and accessories (SITC 7849) increased from 5 percent to 15 percent over this period. Exports of parts to EU-15 and CEEC-8 markets have driven the growth in automotive network exports in 2002-03. The share of parts increased from 69 percent in 2002 to 78 percent in 2003 and the aggregate share of EU-15+CEEC-8 grew from 43 percent to 61 percent of total automotive network exports in this period indicating entry of some Bulgarian firms into ‘pan-European’ chains of supply.

While expanding demand in both EU-15 and CEEC-8 markets accounted for the 187 percent increase in total ICT network’s exports in 2003, final products have become the major drivers of network’s exports. Their share in total network’s exports increased from 45 percent in