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Kosovo – EU trade relations: a dynamic panel poisson approach

Gashi, Petrit, Hisarciklilar, Mehtap and PUGH, Geoff (2016) Kosovo – EU trade relations: a dynamic panel poisson approach. Applied Economics. ISSN 0003-6846

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Abstract or description

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
Faculty: School of Business, Leadership and Economics > Accounting, Finance and Economics
Depositing User: Geoff PUGH
Date Deposited: 26 Jan 2017 10:59
Last Modified: 24 Feb 2023 03:48

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