Kosovo–EU trade relations: a dynamic panel poisson approach

Petrit Gashi, Mehtap Hisarciklilar, Geoffrey Pugh

Research output: Contribution to journalArticle

2 Citations (Scopus)
12 Downloads (Pure)

Abstract

To inform policymaking following trade liberalization between Kosovo and the EU within the framework of the Stabilisation and Association Agreement (SAA), 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 liberalization 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.

Original languageEnglish
Pages (from-to)2642-2654
Number of pages13
JournalApplied Economics
Volume49
Issue number27
Early online date3 Nov 2016
DOIs
Publication statusPublished - 9 Jun 2017
Externally publishedYes

Bibliographical note

This is an Accepted Manuscript of an article published by Taylor & Francis in
Applied Economics on 03/11/2016, available
online: http://www.tandfonline.com/10.1080/00036846.2016.1245836
Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

Keywords

  • Diaspora
  • Dynamic Poisson estimation
  • Gravity model
  • Kosovo-EU trade

ASJC Scopus subject areas

  • Economics and Econometrics

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