-  33  -

intensive and capital intensive products lost shares in EU external imports. Despite gains in 200203, the share of capital labor intensive products in EU imports stood at 67 percent of its peak level in 1995 and that of capital intensive products at 89 percent (Table 7). Moreover, the share of skilled labor intensive products in EU imports fell from 0.33 percent in 2001 to 0.27 in 2002 and slightly rebounded to 0.29 percent in 2003.

**Table 24:** _EU-oriented exports in terms of factor intensities in 1991-2003(in millions of US dollars and percent)_

||1991|1992|1993|1994|1995|1996|1997|1998|1999|2000|2001|2002|<br>2003|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|**Export To EU (in M**|**illions **|**of $)**||||||||||||
|Natural Resource|422|520|494|680|885|721|771|776|746|962|899|982|1,285|
|Unskilled Labor|241|378|381|463|572|636|728|862|899|1,002|1,252|1,299|1,696|
|Capital Intensive|193|206|220|343|484|486|472|417|367|458|481|492|<br>674|
|Skilled Labor|133|150|83|201|449|335|404|462|345|394|466|397|<br>550|
|All abovegoods|989|1,254|1,179|1,687|2,390|2,178|2,376|2,518|2,357|2,816|3,099|3,170|4,205|
|**Export Share(%)**||||||||||||||
|Natural Resource|42.6|41.4|41.9|40.3|37.0|33.1|32.5|30.8|31.7|34.2|29.0|31.0|<br>30.6|
|Unskilled Labor|24.3|30.2|32.3|27.5|23.9|29.2|30.7|34.3|38.1|35.6|40.4|41.0|<br>40.3|
|Capital Intensive|19.5|16.4|18.7|20.3|20.2|22.3|19.9|16.6|15.6|16.3|15.5|15.5|<br>16.0|
|SkilledLabor|13.5|12.0|7.0|11.9|18.8|15.4|17.0|18.4|14.7|14.0|15.0|12.5|13.1|
|**As percent of EU E**|**xternal **|**Impor**|**ts**|||||||||||
|Natural Resource|0.20|0.25|0.25|0.32|0.36|0.28|0.31|0.34|0.32|0.33|0.32|0.37|<br>0.37|
|Unskilled Labor|0.30|0.43|0.45|0.52|0.57|0.60|0.65|0.73|0.74|0.79|0.97|0.96|<br>1.01|
|Capital Intensive|0.10|0.10|0.12|0.16|**_0.18_**|**_0.18_**|0.16|0.13|0.11|0.12|0.13|0.14|<br>0.16|
|Skilled Labor|0.16|0.17|0.10|0.23|**_0.43_**|0.31|0.36|0.36|0.26|0.29|_0.33_|0.27|<br>0.29|
|All abovegoods|0.17|0.21|0.21|0.28|0.33|0.29|0.31|0.31|0.28|0.30|0.34|0.35|<br>0.37|
|**Export Specializat**|**ion Ind**|**ex **||||||||||||
|Natural Resource|**1.14**|**1.15**|**1.19**|**1.16**|**1.08**|0.96|0.98|**1.09**|**1.14**|**1.11**|0.94|**1.05**|<br>**1.00**|
|Unskilled Labor|**1.73**|**2.03**|**2.09**|**1.86**|**1.71**|**2.05**|**2.09**|**2.32**|**2.60**|**2.65**|**2.87**|**2.73**|<br>**2.71**|
|Capital Intensive|0.58|0.49|0.55|0.57|0.55|0.60|0.53|0.41|0.37|0.40|0.39|0.40|<br>0.43|
|Skilled Labor|0.92|0.78|0.47|0.81|1.28|1.08|1.16|1.14|0.91|0.96|0.99|0.76|<br>0.76|
|**Exports inpercent**|**of imp**|**orts**||||||||||||
|Natural Resource|139|149|103|130|155|166|175|148|162|192|159|175|<br>156|
|Unskilled Labor|167|160|123|136|124|144|144|142|144|141|144|130|<br>130|
|Capital Intensive|34|33|42|50|60|72|77|49|36|45|37|34|<br>36|
|Skilled Labor|46|39|21|42|59|58|85|74|56|63|64|48|<br>48|
|All abovegoods|75|79|69|83|92|102|117|97|87|99|90|83|<br>82|

Source: Based on EU Data from UN COMTRADE Statistics.

The aggregates, however, do not allow determining the extent to which the reduction in distortions generated by economic reforms has triggered the process of relocation of resources to new lines of production. A different picture emerges from the analysis of export growth and changes in shares in EU external imports at four-digit SITC Rev. 2 level. Table 25 presents the composition of Bulgarian EU-oriented exports of products whose share in EU imports grew at least at an average annual growth of 30 percent amounting at a minimum to 2.85-fold increase in this share in 2003 over 2000. 141 four-digit SITC items, accounting in 2003 for 16 percent of Bulgaria’s EU-destined exports, met this criterion. Their exports grew on average at 58 percent per year in 2000-03.

**Table 25:** _Composition of ‘most dynamic’ EU-oriented exports and rates of_ _<u>growth in 2000-03 (in percent)</u>_

|||||_T_|_otal EU-exports_|Averagerate ofgrowth|
|---|---|---|---|---|---|---|
||2000|2001|2002|2003|_2003_|peryear in 2000-03|
|Natural Resource Intensive|33.4|33.9|47.6|30.5|_30.6_|54.5|
|Unskilled Labor Intensive|16.7|13.9|13.5|15.9|_40.3_|56.2|
|Capital Intensive|42.0|45.4|33.3|47.0|_16.0_|62.6|
|SkilledLabor Intensive|7.9|6.9|5.7|6.7|_13.1_|51.3|
|**_Memorandum:_**|||||||
|Share in EU-oriented exports|3.8|8.5|15.4|15.9|_100_|58.1|

Source: Based on EU Data from UN COMTRADE Statistics.