Economic Themes (2013) 51 (3) 2, 441-464
Radmila Dragutinović Mitrović, Ivana Popović Petrović
Abstract: This paper examines the effects of trade liberalisation on Serbian food exports. The food is one of the most important Serbian export sectors, which has registered a continuous trade surplus for most of the last decade. Hence, the main aim of the paper is to determine to what extent Serbian food exports has benefited from trade liberalisation and trade preferences approval by the EU. Two research questions are considered: 1) the contribution of trade liberalisation through CEFTA 2006 integration, and 2) the effects of free trade area between Serbia and the EU through the Autonomous Trade Preferences (ATMs) and Interim Agreement on trade and trade related issues (within Stabilisation and Association Agreements, SAA) on Serbian food exports and trade. To this end, panel data gravity model is estimated both for Serbian food exports and food trade in the period 2004-2012. Results indicate significant positive effects of ATMs and CEFTA 2006 on Serbian food exports and food trade as well. Moreover, the contribution of ATMs to the growth of food exports towards new EU member states is considerably higher than toward the core EU members. However, the application of SAA trade agreement does not seem to enhance Serbian food exports, but food imports from the EU.
Keywords: food exports; trade liberalisation; CEFTA 2006; SAA; gravity panel data model.
TRADE LIBERALISATION AND SERBIAN FOOD EXPORTS: RESULTS OF GRAVITY PANEL DATA MODEL
Radmila Dragutinović Mitrović, Ivana Popović Petrović
Abstract: This paper examines the effects of trade liberalisation on Serbian food exports. The food is one of the most important Serbian export sectors, which has registered a continuous trade surplus for most of the last decade. Hence, the main aim of the paper is to determine to what extent Serbian food exports has benefited from trade liberalisation and trade preferences approval by the EU. Two research questions are considered: 1) the contribution of trade liberalisation through CEFTA 2006 integration, and 2) the effects of free trade area between Serbia and the EU through the Autonomous Trade Preferences (ATMs) and Interim Agreement on trade and trade related issues (within Stabilisation and Association Agreements, SAA) on Serbian food exports and trade. To this end, panel data gravity model is estimated both for Serbian food exports and food trade in the period 2004-2012. Results indicate significant positive effects of ATMs and CEFTA 2006 on Serbian food exports and food trade as well. Moreover, the contribution of ATMs to the growth of food exports towards new EU member states is considerably higher than toward the core EU members. However, the application of SAA trade agreement does not seem to enhance Serbian food exports, but food imports from the EU.
Keywords: food exports; trade liberalisation; CEFTA 2006; SAA; gravity panel data model.
