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

  • Valerija Botric

    ()

    (The Institute of Economics, Zagreb)

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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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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  1. Marius Brülhart, 1994. "Marginal intra-industry trade: Measurement and relevance for the pattern of industrial adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(3), pages 600-613, September.
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  3. Antonio Aquino, 1978. "Intra-industry trade and inter-industry specialization as concurrent sources of International Trade in manufactures," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 114(2), pages 275-296, June.
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  8. José Manuel Martins Caetano & Aurora Galego, 2006. "In Search for Determinants of Intra-Industry Trade within an Enlarged Europe," Economics Working Papers 2_2006, University of Évora, Department of Economics (Portugal).
  9. Kandogan, Yener, 2003. "Intra-industry trade of transition countries: trends and determinants," Emerging Markets Review, Elsevier, vol. 4(3), pages 273-286, September.
  10. Yener Kandogan, 2003. "Intra-industry Trade of Transition Countries: Trends and Determinants," William Davidson Institute Working Papers Series 2003-566, William Davidson Institute at the University of Michigan.
  11. Karel Janda & Daniel Münich, 2004. "The Intra-Industry Trade of the Czech Republic in the Economic Transition," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 40(2), pages 27-50, March.
  12. Chonira Aturupane & Simeon Djankov & Bernard Hoekman, 1999. "Horizontal and vertical intra-industry trade between Eastern Europe and the European union," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(1), pages 62-81, March.
  13. Caves, Richard E, 1981. "Intra-Industry Trade and Market Structure in the Industrial Countries," Oxford Economic Papers, Oxford University Press, vol. 33(2), pages 203-23, July.
  14. Goran Buturac & Ivan Teodorovic, 2012. "The Impacts of the Global Recession on Southeast European Countries," Eastern European Economics, M.E. Sharpe, Inc., vol. 50(1), pages 78-97, January.
  15. Hubert Gabrisch, 2006. "Vertical Intra-industry Trade between EU and Accession Countries," IWH Discussion Papers 12, Halle Institute for Economic Research.
  16. Jarko Fidrmuc & Daniela Grozea-Helmenstein & Andreas Wörgötter, 1999. "East-west intra-industry trade dynamics," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(2), pages 332-346, June.
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