Determinants of Kosovo Trade: A Gravity Model Approach

• Authors: Florin Peci , Mario Holzner , Enver Kutllovci
• Languages of publication: EN

Abstracts

EN

This study attempts to identify and quantify the factors affecting bilateral trade flows between Kosovo and its trading partner countries using a gravity model. The econometric model is estimated based on both economic and institutional aspects. The results show that family networking with Kosovo emigrants determines to a large extent both exports and imports, while corruption and informality in the partner country seem not to be issues with regard to Kosovo imports. This comes as a surprise given the initial assumption that Kosovo trades more with countries that have a high share of corruption because of informal networks between small and medium enterprises (SME) predominant in Kosovo. The regional CEFTA free trade agreement has a positive effect on both Kosovo imports and exports. Key words: international trade, gravity model, informality, Kosovo

• Publisher: Sciendo
• Journal: South East European Journal of Economics and Business
• Year: 2010
• Volume: 5
• Issue: 2
• Pages: 33-41

Dates

published

2010-11-01

online

2011-06-03

Contributors

author

Florin Peci

• Customs of Kosovo-Prishtine

author

Mario Holzner

• The Vienna Institute for International Economic Studies (wiiw), Vienna

author

Enver Kutllovci

• Faculty of Economics, University of Prishtine

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Identifiers

DOI

10.2478/v10033-010-0013-4