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Determinants of Kosovo Trade: A Gravity Model Approach

Author

Listed:
  • Peci Florin

    (Customs of Kosovo-Prishtine)

  • Holzner Mario

    (The Vienna Institute for International Economic Studies (wiiw), Vienna)

  • Kutllovci Enver

    (Faculty of Economics, University of Prishtine)

Abstract

This study attempts to identify and quantify the factors affecting bilateral trade flows between Kosovo and its trading partner countries using a gravity model. The econometric model is estimated based on both economic and institutional aspects. The results show that family networking with Kosovo emigrants determines to a large extent both exports and imports, while corruption and informality in the partner country seem not to be issues with regard to Kosovo imports. This comes as a surprise given the initial assumption that Kosovo trades more with countries that have a high share of corruption because of informal networks between small and medium enterprises (SME) predominant in Kosovo. The regional CEFTA free trade agreement has a positive effect on both Kosovo imports and exports. Key words: international trade, gravity model, informality, Kosovo

Suggested Citation

  • Peci Florin & Holzner Mario & Kutllovci Enver, 2010. "Determinants of Kosovo Trade: A Gravity Model Approach," South East European Journal of Economics and Business, Sciendo, vol. 5(2), pages 33-41, November.
    • Handle: RePEc:vrs:seejeb:v:5:y:2010:i:2:p:33-41:n:3
    DOI: 10.2478/v10033-010-0013-4
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    Citations

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    Cited by:

    1. Al Faithrich C. Navarrete & Virgillio M. Tatlonghari, 2018. "An empirical assessment of the effects of the Japan–Philippine Economic Partnership Agreement (JPEPA) on Philippine exports to Japan: a gravity model approach," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-20, December.
    2. Eniel Ninka & Engjell Pere, 2017. "International Trade in Western Balkan Countries: Analysis Based on the Gravity Model," wiiw Balkan Observatory Working Papers 126, The Vienna Institute for International Economic Studies, wiiw.
    3. Kotorri Mrika & Krasniqi Besnik A., 2018. "Managerial Characteristics and Export Performance – Empirical Evidence from Kosovo," South East European Journal of Economics and Business, Sciendo, vol. 13(2), pages 32-48, December.

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