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The trade effects of Albania’s trade agreements with CEFTA members

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  • Jieun Choi
  • Asier Minondo

Abstract

Since the Central European Free Trade Agreement (CEFTA) was signed in 2006, Albanian exports to CEFTA member countries have increased four-fold. Applying a trade growth decomposition methodology, we show that Albanian firms that did not export to CEFTA countries before the agreement account for a large share of this export growth. Exports also increased among goods that were the least traded before the agreement. Estimating a gravity equation, we find that the CEFTA increased Albanian exports between 34% and 144%, depending on how the previous bilateral agreements with CEFTA countries are accounted for. Additional regression analyses conclude that the CEFTA fostered exports through the reduction of tariffs.

Suggested Citation

  • Jieun Choi & Asier Minondo, 2019. "The trade effects of Albania’s trade agreements with CEFTA members," Post-Communist Economies, Taylor & Francis Journals, vol. 31(4), pages 451-463, July.
  • Handle: RePEc:taf:pocoec:v:31:y:2019:i:4:p:451-463
    DOI: 10.1080/14631377.2018.1537736
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    Cited by:

    1. 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.

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