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Western Balkan’s trade with the EU and CEFTA-2006: Evidence from Macedonian data

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  • Mojsoska-Blazevski, Nikica
  • Petreski, Marjan

Abstract

The objective of this paper is to empirically examine the determinants of bilateral trade of Macedonia, with particular emphasis on the trade with the EU and CEFTA-2006 countries. The standard Gravity model is used to measure the determinants of the bilateral trade in a panel framework. Results suggest that Macedonian GDP per capita and foreign GDP per capita play significant role in explaining bilateral trade. When Macedonian trade with EU is investigated only, then domestic income has larger magnitude than compared to the entire sample. Importantly, no additional gains have been approximated from FTAs and from CEFTA-2006, in particular. Potential explanation of this can be the still existent non-tariff barriers across the SEE countries, in terms of the technical, sanitary and phyto-sanitary barriers to trade, the time and costs to export and import, improvement of infrastructure related to trade and so on.

Suggested Citation

  • Mojsoska-Blazevski, Nikica & Petreski, Marjan, 2010. "Western Balkan’s trade with the EU and CEFTA-2006: Evidence from Macedonian data," MPRA Paper 41942, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:41942
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    References listed on IDEAS

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    Cited by:

    1. Martin Mihajlov & Katerina Toshevska-Trpchevska & Irena Kikerkova, 2019. "Towards The Application Of Blockchain Technology For Improving Trade Facilitation In Cefta 2006," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 28(1), pages 209-222, june.
    2. Senija Nuhanovic & Mirnesa Barakovic Nurikic, 2016. "The Analysis Of The Influence Of Non-Tariff Barriers On Bosnia And Herzegovina Trade Within Cefta 2006," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 14(2), pages 33-43, November.
    3. Jelena Trivic & £ukasz Klimczak, 2015. "The determinants of intra-regional trade in the Western Balkans," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 33(1), pages 37-66.

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    More about this item

    Keywords

    bilateral trade; Gravity model; Macedonia; non-tariff barriers;
    All these keywords.

    JEL classification:

    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • F10 - International Economics - - Trade - - - General

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