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Bosnia and Herzegovina: Estimation of the Effect of the Agreement on Amendment of and Accession to the CEFTA on Bosnia and Herzegovina Trade Flows and Calculation of Trade Potential

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dc.contributor.authorHlivnjak, Sandra
dc.contributor.authorMujabašić, Amra
dc.contributor.authorFočo-Obeji, Emina
dc.contributor.authorHamzić, Lejla
dc.date.accessioned2019-08-05T21:25:57Z
dc.date.available2019-08-05T21:25:57Z
dc.date.issued2019
dc.description.abstractThis paper provides an assessment of the trade performance of Western Balkan (WB) countries with the European Union (EU) countries. The particular focus is on Bosnia and Herzegovina's (BiH) trade potential and an estimation of the effects of the Agreement on Amendment of and Accession to the Central European Free Trade Agreement (CEFTA 2006) using gravity equations. The approach taken by Bussière et al. (2005) is used as a base reference to develop the model of BiH trade flows and later on BiH trade potential. Bussière et al. (2005) estimated the potential trade of Central and Eastern European countries using a new measure of trade integration called the trade condition indicator. This indicator is calculated from country-pair specific effects after controlling for the levels of the time-invariant variables, like distance. Fixed effect vector decomposition (FEVD) procedure offers a solution to the problem of estimating time-invariant variables in panel data when at least one variable is correlated with the unobservable unit effect. FEVD is considered as a proper procedure for this application since CEFTA 2006 is considered endogenous and correlated with unobserved unit effect. Applying FEVD it was found that in each WB country imports and exports are below their potential level with the EU. The results suggest that even as BiH moves towards its potential trade levels the trade deficit will remain, albeit at a diminishing level if capacity building for stronger trade policy dialog continues and more opportunities to diversified BiH export are exploit.en
dc.identifierhttp://documents.worldbank.org/curated/en/381491563201831802/Bosnia-and-Herzegovina-Estimation-of-the-Effect-of-the-Agreement-on-Amendment-of-and-Accession-to-the-CEFTA-2006-on-Trade-Flows-and-Calculation-of-Trade-Potential
dc.identifier.doi10.1596/32178
dc.identifier.urihttps://hdl.handle.net/10986/32178
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectFREE TRADE AREA
dc.subjectTRADE FLOWS
dc.subjectTRADE POTENTIAL
dc.subjectGRAVITY MODEL
dc.subjectFIXED EFFECTS ESTIMATION
dc.titleBosnia and Herzegovinaen
dc.title.subtitleEstimation of the Effect of the Agreement on Amendment of and Accession to the CEFTA on Bosnia and Herzegovina Trade Flows and Calculation of Trade Potentialen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleBosnia and Herzegovina
okr.date.disclosure2019-07-15
okr.doctypePublications & Research::Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/381491563201831802/Bosnia-and-Herzegovina-Estimation-of-the-Effect-of-the-Agreement-on-Amendment-of-and-Accession-to-the-CEFTA-2006-on-Trade-Flows-and-Calculation-of-Trade-Potential
okr.guid709701563202700916
okr.guid381491563201831802
okr.identifier.doi10.1596/32178
okr.identifier.doihttps://doi.org/10.1596/32178
okr.identifier.externaldocumentum090224b086ebb9de_2_0
okr.identifier.internaldocumentum31121115
okr.identifier.report137563
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/381491563201831802/pdf/Bosnia-and-Herzegovina-Estimation-of-the-Effect-of-the-Agreement-on-Amendment-of-and-Accession-to-the-CEFTA-2006-on-Trade-Flows-and-Calculation-of-Trade-Potential.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryBosnia and Herzegovina
okr.topicInternational Economics and Trade::Access to Markets
okr.topicInternational Economics and Trade::Export Competitiveness
okr.topicInternational Economics and Trade::Rules of Origin
okr.topicInternational Economics and Trade::Trade Liberalization
okr.topicInternational Economics and Trade::Trade Policy
okr.topicInternational Economics and Trade::Trade and Regional Integration
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