The development of Southeast European countries (SEECs) depends crucially on international trade. This paper empirically analyzes intraindustry trade between SEECs and the European Union using bilateral trade data at the combined nomenclature four-digit level from 1996 to 2004. We analyze trade patterns for Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, Romania, and Serbia and Montenegro. Applying the Grubel-Lloyd index indicates changes in the trade of manufactured goods between the SEECs and the European Union during the first years of the Stabilization and Association Agreement implementation period.
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