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Regional Economic Cooperation in the Western Balkans: The Role of Stabilization and Association Agreements, Bilateral Investment Treaties and Free Trade Agreements in Regional Investment and Trade Flows

Author

Listed:
  • Richard Grieveson
  • Mario Holzner
  • Goran Vukšić

Abstract

This study explores the role of stabilization and association agreements (SAAs), bilateral investment treaties (BITs) and free trade agreements (FTAs) in the Western Balkans and their impact on the region’s inward foreign direct investment (FDI) and exports, with primary interest in the effects on intra-regional FDI and trade. Results show that BITs were not related to intra-regional FDI, nor to the FDI from other countries. The Central European Free Trade Agreement (CEFTA) contributed to increased intra-regional trade. Finally, the SAAs turn out to be highly significant for FDI from the EU to signee countries, and their exports to the EU.

Suggested Citation

  • Richard Grieveson & Mario Holzner & Goran Vukšić, 2021. "Regional Economic Cooperation in the Western Balkans: The Role of Stabilization and Association Agreements, Bilateral Investment Treaties and Free Trade Agreements in Regional Investment and Trade Flo," Eastern European Economics, Taylor & Francis Journals, vol. 59(1), pages 3-24, January.
  • Handle: RePEc:mes:eaeuec:v:59:y:2021:i:1:p:3-24
    DOI: 10.1080/00128775.2020.1846130
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    Cited by:

    1. Oliver Reiter & Robert Stehrer, 2021. "Value Chain Integration of the Western Balkan Countries and Policy Options for the Post-COVID-19 Period," wiiw Policy Notes 48, The Vienna Institute for International Economic Studies, wiiw.
    2. Krasniqi, Besnik & Ahmetbasić, Jasmina & Bartlett, Will, 2022. "Foreign direct investment and backward spillovers in the Western Balkans: the context, opportunities and barriers to the development of regional supply chains," LSE Research Online Documents on Economics 115391, London School of Economics and Political Science, LSE Library.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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