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Kosovo – EU trade relations: a dynamic panel poisson approach

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journal contribution
posted on 2023-06-09, 15:14 authored by Petrit Gashi, Mehtap Hisarciklilar, Geoffrey Pugh
To inform policy making following trade liberalisation between Kosovo and the EU within the framework of the Stabilisation and Association Agreement, we specify a gravity model to investigate Kosovo’s trade in goods with 28 EU countries, over the period 2005-2013. We reconcile competing methodological requirements by using a dynamic Poisson approach to estimation. Together, persistent trade patterns and an unfavourable combination of demand and supply elasticities suggest that trade liberalisation in isolation is not sufficient to promote exports but may need to be incorporated within a wider policy and institutional framework. In addition, our findings suggest that trade costs should be a particular focus for policy: distance has a big negative influence on Kosovo’s exports to EU countries; while diaspora communities promote Kosovo’s exports to EU markets, most likely because they offset trade costs.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

Applied Economics

ISSN

0003-6846

Publisher

Taylor & Francis

Issue

27

Volume

49

Page range

2642-2654

Department affiliated with

  • Business and Management Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2018-10-04

First Open Access (FOA) Date

2018-10-04

First Compliant Deposit (FCD) Date

2018-10-02

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