Contents of the volume

2016, Volume 69 - Issue 3

ISSN: 2499-8265
RSS feed citation: at CitEc
Publication date: 01 August 2016


Emmanuel Anoruo, Uchenna Akpom

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Safet Kurtovic, Blerim Halili, Nehat Maxhuni, Sead Talovic

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Visar Malaj, Stefano De Rubertis

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Teboho Jeremiah Mosikari, Joel Hinaunye Eita

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Safet KURTOVIC, Faculty of Management and Business Economics, University of Travnik, Bosnia and Herzegovina


Blerim HALILI, College Pjeter Budi, Department Customs and Freight, Pristina, Kosovo

Nehat MAXHUNI, College Biznesi, Department of Economics, Pristina, Kosovo

Sead TALOVIC, Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina

Liberalization of Trade with the EFTA Countries: Some Evidence from Bosnia and Herzegovina




This paper's main objective is to study the effect of the liberalization of trade with EFTA countries on trade balance of B&H. It analyzes the time series data for the period 2005-2014. Our theoretical framework includes the gravity model and the econometric technique system of simultaneous equations: Three-Stage Least Squares. The research results show that the liberalization of trade with the EFTA countries has led to an increase of trade flows; however, it has not resulted in a significant convergence in exports and imports i.e. in an equable trade balance. We have concluded that the increase in export from B&H to the EFTA countries is positively affected by the consumer price index, population, signed bilateral agreements and geographical distance between the EFTA countries, while the reduction in import of products to B&H is positively affected by signed bilateral agreements with the EFTA countries. Finally, we have found that the reduction in B&H trade deficit is positively affected by reduced gross domestic product (GDP) of B&H. In the case of other analyzed independent variables affecting trade balance, no positive effects have been registered.

JEL classification

F110, F130, F150


Trade Agreements, Liberalization, Trade, Export, Import, Trade Balance



  1. Introduction
  2. Literature review
  3. The economic model
  4. Econometric issues
  5. Estimation results
  6. Conclusion


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