Foreign trade and integration in the European Union – Ex-post evaluations of MSA effects
Foreign trade and integration in the European Union – Ex-post evaluations of MSA effects

Summary/Abstract: Purpose: This paper addresses the importance of the “Free trade’ in case of Albania, in relation with the difficulties, stages of implementation and the factors that will make the country more vulnerable to that section of development. Methodology: The paper uses the gravity model with dependent variables, such as: exports and imports and independent variables such as GDP, (Gross Domestic Product), which is a figure used to show the total value of products and services produced within a country’s borders in a given period of time, usually a year. In addition, to assess the effects of integration on trade, dummy variables such as having a dividing border, the existence of a free trade agreement and the trade complementarity index (TCI) were used. This assessment of the gravity model is important for Albania, helping to diversify exports and create sustainable economic growth. Findings: The removal of customs barriers and integration in the European Union (EU) would bring further economic development for a country and Albania, specifically. Also, the Albanian economy needs to expand the sources of growth and strengthen competitiveness. Value: The study serves as a basic analysis for all Western Balkan countries who are striving to comply with Acquis, in their way towards EU integration.

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