Kosovo – EU trade relations: a dynamic panel poisson approach

Gashi, Petrit, Hisarciklilar, Mehtap and Pugh, Geoffrey (2017) Kosovo – EU trade relations: a dynamic panel poisson approach. Applied Economics, 49 (27). pp. 2642-2654. ISSN 0003-6846

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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.

Item Type: Article
Keywords: Kosovo-EU trade; Gravity model; Dynamic Poisson estimation; Diaspora
Schools and Departments: University of Sussex Business School > Business and Management
Subjects: H Social Sciences > H Social Sciences (General)
Depositing User: Mehtap Hisarciklilar
Date Deposited: 04 Oct 2018 13:47
Last Modified: 02 Jul 2019 14:19
URI: http://sro.sussex.ac.uk/id/eprint/79035

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