Measuring the Effects of Trade Liberalization in Kosovo
AbstractSimilar to other countries in the European periphery, Kosovo lacks competitiveness, has adopted the euro as its national currency and started an integration process with the EU. The next milestone in this process is the signing of an FTA with the EU. We simulate full trade liberalization vis-à-vis the EU, using the Global Simulation Model. Our results suggest a slight output loss in almost all industries in Kosovo due to a drop in prices. Moreover the government budget is expected to lose about 5% of its revenues due to the tariff cut. A shift towards more direct taxation and measures aimed at improving the investment climate in Kosovo are recommended.
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Bibliographic InfoPaper provided by The Vienna Institute for International Economic Studies, wiiw in its series wiiw Working Papers with number 85.
Length: 12 pages including 1 Table and 2 Figures
Date of creation: Jun 2012
Date of revision:
Publication status: Published as wiiw Working Paper
Other versions of this item:
- Mario Holzner & Florin Peci, 2012. "Measuring the Effects of Trade Liberalization in Kosovo," wiiw Balkan Observatory Working Papers 98, The Vienna Institute for International Economic Studies, wiiw.
- F15 - International Economics - - Trade - - - Economic Integration
- F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
- P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
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