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Measuring the Effects of Trade Liberalization in Kosovo

Author

Listed:
  • Mario Holzner

    (The Vienna Institute for International Economic Studies, wiiw)

  • Florin Peci

Abstract

Similar 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 an improvement of the investment climate in Kosovo is recommended.

Suggested Citation

  • 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.
    • Handle: RePEc:wii:bpaper:098
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    References listed on IDEAS

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    Cited by:

    1. Burkitbayeva, Saule & Kerr, William A., 2013. "The Accession of Kazakhstan, Russia and Ukraine to the WTO: What will it Mean for the World Trade in Wheat?," Commissioned Papers 158891, Canadian Agricultural Trade Policy Research Network.

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    Keywords

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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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