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The trade effects of Albania’s trade agreements with CEFTA members

Jieun Choi () and Asier Minondo ()

Post-Communist Economies, 2019, vol. 31, issue 4, 451-463

Abstract: Since the Central European Free Trade Agreement (CEFTA) was signed in 2006, Albanian exports to CEFTA member countries have increased four-fold. Applying a trade growth decomposition methodology, we show that Albanian firms that did not export to CEFTA countries before the agreement account for a large share of this export growth. Exports also increased among goods that were the least traded before the agreement. Estimating a gravity equation, we find that the CEFTA increased Albanian exports between 34% and 144%, depending on how the previous bilateral agreements with CEFTA countries are accounted for. Additional regression analyses conclude that the CEFTA fostered exports through the reduction of tariffs.

Date: 2019
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DOI: 10.1080/14631377.2018.1537736

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