Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/203950
Authors: 
Holzner, Mario
Peci, Florin
Year of Publication: 
2012
Series/Report no.: 
wiiw Working Paper No. 85
Publisher: 
The Vienna Institute for International Economic Studies (wiiw), Vienna
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 measures aimed at improving the investment climate in Kosovo are recommended.
Subjects: 
trade policy simulation
Kosovo
EU integration
JEL: 
F15
F17
P33
Document Type: 
Working Paper

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