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Assessing regional integration and business potential in the Western Balkans

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  • Sklias, Pantelis
  • Tsampra, Maria
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    Abstract

    This paper extrapolates the patterns and volume of business development within the Western Balkans region. This is a war-torn area with social, cultural, religious and political specificities. Despite noticeable institutional and growth progress of the individual countries, regional business is still lagging as persistent state rigidities create trade distortions. We argue that intra-regional business clusters, embedded in shared socio-cultural characteristics, can be the alternative to underdevelopment. Political willingness is the prerequisite, as market forces in transitional areas seem to be of secondary importance to regional business development and integration. New analytical approaches are needed to capture the complex reality.

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    File URL: http://mpra.ub.uni-muenchen.de/36341/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 36341.

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    Date of creation: 25 Nov 2011
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    Handle: RePEc:pra:mprapa:36341

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    Keywords: Regional development; business clusters; transition economies;

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    1. Edward Christie, 2001. "Potential Trade in Southeast Europe: A Gravity Model Approach," wiiw Balkan Observatory Working Papers 011, The Vienna Institute for International Economic Studies, wiiw.
    2. Henrekson, Magnus & Torstensson, Johan & Torstensson, Rasha, 1995. "Growth Effects of European Integration," Working Paper Series 439, Research Institute of Industrial Economics.
    3. Michael Storper & Yun-chung Chen, 2002. "Trade and the location of industries in the OECD and European Union," Journal of Economic Geography, Oxford University Press, vol. 2(1), pages 73-107, January.
    4. Karras, Georgios, 1997. "Is Government Investment Underprovided in Europe? Evidence from a Panel of Fifteen Countries," Economia Internazionale / International Economics, Camera di Commercio di Genova, vol. 50(2), pages 223-235.
    5. Ottaviano, Gianmarco & Melitz, Marc, 2008. "Market Size, Trade, and Productivity," Scholarly Articles 3229096, Harvard University Department of Economics.
    6. Ben-David, Dan, 1998. "Convergence clubs and subsistence economies," Journal of Development Economics, Elsevier, vol. 55(1), pages 155-171, February.
    7. Maurice Schiff & L. Alan Winters, 2003. "Regional Integration and Development," World Bank Publications, The World Bank, number 15172, October.
    8. Carmignani, Fabrizio, 2007. "A note on income converge effects in regional integration agreements," Economics Letters, Elsevier, vol. 94(3), pages 361-366, March.
    9. Ron Boschma & Simona Iammarino, 2009. "Related Variety, Trade Linkages, and Regional Growth in Italy," Economic Geography, Clark University, vol. 85(3), pages 289-311, 07.
    10. Balasubramanyam, V N & Sapsford, David & Griffiths, David, 2002. "Regional Integration Agreements and Foreign Direct Investment: Theory and Preliminary Evidence," Manchester School, University of Manchester, vol. 70(3), pages 460-82, June.
    11. Ioannis-Dionysios Salavrakos & Zornitsa Vasileva Georgieva, 2010. "Is cluster development an explanatory factor of increased levels of FDI? Evidence from the case of Bulgaria," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 2(6), pages 461-478.
    12. Christian H.M. Ketels & Olga Memedovic, 2008. "From clusters to cluster-based economic development," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(3), pages 375-392.
    13. Edward Christie, 2003. "Foreign Direct Investment in Southeast Europe," wiiw Working Papers 24, The Vienna Institute for International Economic Studies, wiiw.
    14. Edward Christie, 2002. "Potential Trade in Southeast Europe: a Gravity Model Approach," wiiw Working Papers 21, The Vienna Institute for International Economic Studies, wiiw.
    15. Soloaga, Isidro & Alan Wintersb, L., 2001. "Regionalism in the nineties: what effect on trade?," The North American Journal of Economics and Finance, Elsevier, vol. 12(1), pages 1-29, March.
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