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Intra-industry Trade between the European Union and Western Balkans: A Close-up

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  • Valerija Botric

    ()
    (The Institute of Economics, Zagreb)

Abstract

After the collapse of socialism, ex-centrally planned economies underwent the transition process towards the market economy with more or less success. The now so-called Western Balkans region was additionally burdened by the war, which disrupted previously existing trading routes, contributed to the delay in the transition process and increased the gap not only between them and more advance market economies, but also other transition economies in the region. This has significantly influenced the speed of the EU integration processes of these countries. The accession and participation on the common EU market bring additional challenges to these rather non-competitive economies. What comes into perspective when having in mind the integration prospects, is the evolution of trade between these countries and EU. Trade patterns are used as one of the indicators of whether we should look for integrating forces between EU countries and Western Balkan countries. The countries included in the analysis are: Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo, Serbia and Montenegro. For each country in the sample, the intra-industry trade (IIT) with new and old EU member states is analyzed in total, along with horizontal and vertical trade. The analysis is performed on a 4-digit level of Combined Nomenclature (CN).

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Bibliographic Info

Paper provided by The Institute of Economics, Zagreb in its series Working Papers with number 1202.

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Length: 41 pages
Date of creation: Jul 2012
Date of revision:
Handle: RePEc:iez:wpaper:1202

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Keywords: Western Balkans; trade; intra-industry trade (IIT); vertical intra-industry trade (VIIT); horizontal intra-industry trade (HIIT);

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References

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  1. Joze P. Damijan & José de Sousa & Olivier Lamotte, 2006. "The Effect of Trade Liberalization in South-Eastern European Countries," wiiw Balkan Observatory Working Papers 70, The Vienna Institute for International Economic Studies, wiiw.
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  12. Hubert Gabrisch, 2006. "Vertical Intra-industry Trade between EU and Accession Countries," IWH Discussion Papers 12, Halle Institute for Economic Research.
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Cited by:
  1. Mario Holzner, 2013. "Impact of Croatian EU Accession on Regional Trade Patterns," wiiw Policy Notes 10, The Vienna Institute for International Economic Studies, wiiw.

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