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Potential Impacts of WTO Accession on the Agribusiness Sector in Bosnia and Herzegovina

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  • Vanzetti, David
  • Nikolic, Aleksandra

Abstract

Bosnia Herzegovina (BH) is in the process of joining the World Trade Organization in the near future and the European Union in the medium term. As a net agriculture and food importer, accession will require BH to expose some of its inefficient and sensitive agricultural industries, such as meat and dairy products, to international competition. A bilateral trade model is used to estimate the potentially negative impacts of accession on production and trade in several specific sectors. According to the research results, BH imports are estimated to increase, driven by the livestock products sector. Exports are only marginally affected. A drop in overall customs revenues is expected. BH is expected to experience a small reduction in agricultural sector welfare following accession to the EU or the WTO. The implications for poverty are likely to be negative, especially for meat producers. On the other hand the main beneficiaries will be the consumers. This presumes that lower border prices are passed through to domestic consumers.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114611.

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Date of creation: 02 Sep 2011
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Handle: RePEc:ags:eaae11:114611

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Keywords: Bosnia Herzegovina; WTO accession; trade; agricultural tariffs; Agribusiness; International Relations/Trade;

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  1. Mitra, Devashish & Ural, Beyza P., 2007. "Indian manufacturing : a slow sector in a rapidly growing economy," Policy Research Working Paper Series 4233, The World Bank.
  2. Ballance, Robert H & Forstner, Helmut & Murray, Tracy, 1987. "Consistency Tests of Alternative Measures of Comparative Advantage," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 157-61, February.
  3. Hallat, Jani, 2005. "Relative Competitiveness Of The South African Oilseed Industry," Master's Degree Theses 28063, University of the Free State, Department of Agricultural Economics.
  4. Maggie Xiaoyang Chen & John Wilson & Tsunehiro Otsuki, 2008. "Standards and export decisions: Firm-level evidence from developing countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 17(4), pages 501-523.
  5. Esterhuizen, Dirk & van Rooyen, C.J., 2006. "An inquiry into factors impacting on the competitiveness of the South African wine industry," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 45(4), December.
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