Measuring the Effects of Trade Liberalization in Kosovo

By: Holzner, Mario.

Contributor(s): Peci, Florin.

Material type: materialTypeLabel

BookSeries: wiiw Balkan Observatory Working Papers: 98Publisher: Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2012Subject(s): trade policy simulation | Kosovo | EU integrationCountries covered: KosovoClassification: F15 | F17 | P33 Online resources: Click here to access online Summary: 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.

Holdings
Item type	Current library	Call number	Status	Date due	Barcode
Paper	WIIW Library	98 (Browse shelf(Opens below))	Available		1000010003196

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Previous	95 Inequality and Public Policy: A Country Study for Bulgaria	96 Subgroup and Shapely Value Decompositions of Multidimensional Inequality: An Application to South East European Countries	97 The impact of customs procedures on business performance: evidence from Kosovo	98 Measuring the Effects of Trade Liberalization in Kosovo	99 Sectoral wage dynamics and intersectoral linkages in the context of export competitiveness: the case of Croatia	HB Golden Growth	HB-BR 1 Arbeitsrecht	Next

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.

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