19 Mi), that is Ij = (XijXiX)/ (Mj,/(M, - Mnj). If the index is greater than one, trade is more 'intense' than would be expected. Trade intensities within the region are often significantly greater than one.

Table 8: Intensities of Trade in Parts in 1997

|ReporterI<br>Partner|BGR|CZE|EST|HUN|LVA|LTU|POL|ROM|SVK|SVN|CEEC-<br>10|EU15|ROW|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Bulgaria|N.A.|<br>5.94|<br>1.03|2.43|<br>6.18|7.46|<br>4.44|**_14.50_**|3.81|1.08|<br>4.48|<br>1.15|<br>0.77|
|Czech rep.|4.82|<br>N.A.|<br>0.55|1.10|<br>1.71|3.89|<br>9.03|<br>1.53|_58.69_|0.89|<br>6.82|<br>1.94|<br>0.21|
|Estonia|0.02|<br>0.04|<br>N.A.|0.10|**101.11**|34.25|<br>1.05|<br>0.00|N.A.|N.A.|<br>2.33|<br>2.15|<br>0.28|
|Hungary|2.09|<br>0.91|<br>0.09|N.A.|<br>1.02|0.97|<br>0.68|<br>_4.87_|<br>3.38|1.01|<br>0.96|<br>2.38|<br>0.20|
|Latvia|4.33|<br>0.12|35.36|0.22|<br>N.A.|_95.53_|1.20|<br>0.02|1.17|N.A.|<br>3.54|<br>1.56|<br>0.57|
|Lithuania|2.85|<br>0.82|45.14|1.25|**_249.61_**|N.A.|<br>2.01|<br>0.29|1.47|0.00|<br>5.55|<br>0.71|<br>0.98|
|Poland|4.60|<br>7.61|<br>0.96|1.67|<br>4.05|_11.47_|N.A.|<br>1.70|<br>6.08|0.22|<br>2.92|<br>1.97|<br>0.35|
|Romania|5.11|<br>0.42|<br>N.A.|1.68|<br>N.A.|0.02|_13.90_|<br>N.A.|<br>1.47|0.37|<br>4.81|<br>1.26|<br>0.69|
|Slovakia|3.08|_51.95_|0.08|2.80|<br>1.88|0.97|<br>3.37|<br>1.27|<br>N.A.|1.01|13.27|<br>1.62|<br>0.13|
|Slovenia|3.02|<br>1.58|<br>0.06|1.22|<br>0.30|0.03|<br>0.54|<br>1.06|<br>_3.06_|N.A.|<br>1.09|<br>2.13|<br>0.35|
|Intra-CEEC|3.51|<br>5.78|<br>1.21|1.06|<br>8.01|5.51|<br>3.92|<br>2.24|20.48|0.65|<br>4.37|<br>1.95|<br>0.27|

Note: Bold italics denote the highes **t** rade intensity for a reporter (row); bold denote the intensity below unity for a partner (column).

Source: Computations based on country data as reported to the UN COMTRADE database.

Table 8 reports export intensities (reporters in lines) and import intensities (partners in columns) of parts for intra-CEEC trade, their trade with the EU, and the rest of the world. For instance, intensity of Estonian exports to Hungary is 0.10, while that of Estonian imports is 0.09 (which is equal to Hungarian export intensity vis-a-vis Estonia).

CEEC trade in parts seems to concentrate on the broadly conceived EU-CEEC region. For each CEEC export intensities with the rest of the world (ROW) are well below unity. Two countries stand out. Hungary has less 'intense' trade in parts than expected with CEEC, and Lithuania with the EU. On a country-by-country basis, there is some variation. First, old connections due to previous existence within the same state still seem to matter. Baltic economies trade with each other much more than would be expected, whereas with other CEEC export intensities are mostly below one. Latvia' import intensities from other Baltics are significantly higher than its export intensities, which indicate it is an important market for them. The countries that emerged from the velvet divorce, Czech Republic and Slovakia, remain important markets for parts for each other. Their respective export intensities are still very high well above 50.

Second, geography also matters, but not always. For Bulgaria export intensity is the highest with Romania, while for the latter Bulgaria ranks second after Poland (exports within Daewoo subsidiaries may account for it). Both Balkan countries are not important markets for parts from other CEECs. For Poland, bordering Lithuania, Czech Republic and Slovakia are more