Trade Liberalization Strategies: What Could South Eastern Europe Learn From Cefta and Bfta?

By Antonis Adam, James McHugh, Theodora Kosma

December 1, 2003

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Antonis Adam, James McHugh, and Theodora Kosma. Trade Liberalization Strategies: What Could South Eastern Europe Learn From Cefta and Bfta?, (USA: International Monetary Fund, 2003) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper explores the effectiveness of the Central European Free Trade Area (CEFTA) and the Baltic Free Trade Area (BFTA). Estimates from a gravity model and bilateral trade data support the view that both CEFTA and BFTA helped expand regional trade and limit the emergence of a "hub-and-spoke" relationship between the CEECs and the European Union (EU). These empirical conclusions carry some important policy implications for the "second wave" of prospective EU members among Southeastern European Countries (SEECs). The paper argues that the SEECs should reconsider their bilateral approach to trade liberalization and move towards a multilateral free-trade area as exemplified by both the CEFTA and BFTA.

Subject: Customs unions, Exports, International trade, Trade agreements, Trade balance, Trade liberalization

Keywords: Baltics, BFTA, BFTA agreement, BFTA country, CEFTA, CEFTA exports to the EU, CEFTA membership, Customs unions, Eastern Europe, EU accession process, EU agreement, EU enlargement, EU membership, Europe, Exports, Gravity models, Market share, Stability pact, Trade agreements, Trade balance, Trade liberalization, WP

Publication Details

Pages:

32
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2003/239
Stock No:

WPIEA2392003
ISBN:

9781451875799
ISSN:

1018-5941

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