Trade Policies and Integration of the Western Balkans


Oliver Reiter and Robert Stehrer

wiiw Working Paper No. 148, May 2018
39 pages including 16 Tables and 3 Figures

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Based on a newly constructed multi-country input-output table including all European countries, we estimate the economic effects of the EU accession countries entering the ‘Stabilisation and Association Agreement’ (SAA) with the EU and the potential effects of joining the European Single Market applying a structural gravity framework. The results point towards strong positive effects on trade for the SAA countries, but only small effects for the EU Member States. Conducting a counterfactual analysis, the paper gives an indication of the magnitude of the positive impacts on GDP for these countries. In addition, a detailed industry breakdown of these effects is provided.


Keywords: structural gravity, modelling, EU accession, Western Balkans, multi-country input-output table

JEL classification: C54, C55, C67, F13, F14, F15, F17

Countries covered: Wider Europe

Research Areas: International Trade, Competitiveness and FDI