The second half of the 20th century have been characterised as a golden age of world trade. This is made possible by unprecedented liberalisation of trade and investment regimes across the world. World trade have reached unprecedented highs and grow exponentially, with the largest share recorded by Europe and other developed economies. Many companies from developed countries have used this opportunity to export their business across the globe and become global companies, mainly using foreign direct investments (FDI) as main tools. The US but also European and Japanese companies were leading the trend. Limited number of developing countries have used this opportunity that liberal trade order provides and became newly industrialised countries. First wave were the Asian tigers, like Japan, Republic of Korea, Singapore, Taiwan and Hong Kong but nowadays the P.R. China, Indonesia, India are also dynamically growing. Many other developing economies have been stuck in the slow growth, low export potential and poverty and did not used the opportunity of growing world trade. The worst situation is with Least developed countries (LDCs), group defined by the United Nations which needs assistance.

Aim: This paper aims to explore the role of visa liberalisation in promoting tourism flows by quantifying the effects of changes in visa regimes. Methodology: The author focused on Serbia studied in the period between 2006 and 2019, which represents an interesting case as Serbia increased then its integration efforts, opening its economy and changing the visa regime toward numerous countries, providing an opportunity of identifying the effects of visa liberalisation. An extended gravity model was estimated using a sample of travel services exports from Serbia to its 188 partner economies in the aforesaid period employing the Poisson pseudo-maximum likelihood estimators. Results: It was found that visa liberalisation had a statistically significant positive effect on travel services exports. Moreover, the effect was more pronounced for exports to geographically more distant and higher-income economies. Implications and recommendations: The study revealed interesting patterns of travel services exports and their determinants which could have useful implications for policymakers. For instance, the results implied that travel services exports could be significantly increased by liberalising the visa regime towards high potential market economies. The study also pointed to the price sensitivity of tourists visiting Serbia and shed light on the effects of cultural factors on tourism flows. Originality/value: This research innovatively applied the gravity model to analyse travel services exports, filling a notable gap in tourism studies. By focusing on a previously unexplored research sample, in particular on the economy undergoing significant visa liberalisation changes, the study provided a nuanced understanding of the relationship between policy shifts and tourism dynamics. This approach contributes to the adaptability of the gravity framework of international trade in the context of tourism economics and offers valuable insights for policymakers.

Over the past several decades there has been increasing competition among countries to attract foreign direct investment, which is often hypothesised to positively affect the development of host countries. Bilateral investment treaties are one of the policy instruments the host countries often use as a means to encourage foreign direct investment inflows. In this study, we aim to explore the effectiveness of bilateral investment treaties in achieving these goals in the case of Serbia. Using the panel data on Serbia and its 198 partner economies observed in the period 2010-2019, we estimate a gravity model of foreign direct investment inflows by applying the Poisson pseudo-maximum likelihood method. We found that ratified bilateral investment treaties have a statistically significant positive effect on foreign direct investment inflows in Serbia. Furthermore, the quality of the treaties was found to positively affect the inflows, whereby the anti-discriminatory provisions seem to be the most important. The results imply that Serbia could attract more foreign direct investment by concluding new bilateral investment treaties and improving the quality of the existing ones.

This paper investigates the importance of travel service exports in Western Balkans countries. It identifies the key drivers and barriers in exporting travel services for five Western Balkan economies, in their intraregional trade and in trade in travel services with the EU. We use a gravity model, estimated over 2013-2019, applying the Poisson pseudo-maximum likelihood estimator. The results of the trade gravity model reveal that GDP, geographical distance, and cultural characteristics such as language and historical similarities and cultural heritage influence travel services.

In this article, we investigate if the greater development of e-commerce affects exports. Furthermore, we consider how other aspects of information and communication technology, including e-government and the prevalence of internet use in the workforce, affect exports on the sector level. The system generalized method of moments was applied to estimate a dynamic exports model using panel data on 32 European countries in the period of 2009 to 2017. Our findings indicate that only e-commerce positively affects exports, particularly in the service and manufacturing sectors. The results imply that e-commerce development could be used as an export-enhancing policy instrument.

This ebook contains two succinct essays on the future of foreign direct investment (FDI), and one on the future of Russo–Hungarian investment links. In the first essay István Magas links the future of FDI to three major forces: changes in climate, in demography, and in human behaviour. He analyses various dimensions of that future, including environmental, geopolitical and financial problems. In the second essay Predrag Bjelić and Radovan Kastratović focus on both global and regional issues. On the global scene, they deal with the repercussions of the malfunctions of the multilateral system and the need to renew theories of FDI. At the regional level, they consider the future of FDI in the CEFTA 2006 region, which depends on the interaction between policies aimed at deepening intra-group cooperation and joining the European Union (EU). The third essay, by Kálmán Kalotay, attempts to predict the consequences of the Russo–Ukrainian war for Russo–Hungarian investment links. Business operations will be particularly difficult for Hungarian firms operating in Russia, which have to comply with the EU sanctions in an environment full of logistical and supply problems. The volume also contains an introduction by Kálmán Kalotay explaining why this book was born – to mark his retirement from the United Nations in September 2021 – and how he sees the upcoming years in light of his past personal experience. The ebook also includes the list of the words that authors were requested not to use due to their overdoing in other studies.

This article addresses non-tariff measures applied in CEFTA 2006, analysed specifically from the perspective of two Parties – North Macedonia and Serbia. It provides insight into the business community’s views in each country with regard to the non-tariff measures noted in their trade within CEFTA, as well as comparison of the Macedonian and Serbian case of imposing, addressing and overcoming the non-tariff measures. The article derives on the findings of the empirical research conducted in parallel in both countries in June-August 2021 within the framework of the EU Funded GIZ Project: Support to the Regional Economic Integration. It also reflects relevant legislation, such as CEFTA 2006 Protocols. In terms of content, the article includes overview of the trade within CEFTA 2006 and focuses on the non-tariff measures relevant to North Macedonia and Serbia, in particular - sanitary and phytosanitary measures; technical barriers to trade; price control measures and trade facilitation measures, such as formalities connected with import, export and transit, along with the procedures of release and clearance of the goods. The analysis of the empirical information indicates that sanitary and phytosanitary measures and trade facilitation have been reported as most common problems by both parties, despite the CEFTA Protocols regulating some of the issues. The article’s conclusions mirror the findings of the research and provide recommendations about possibilities for overcoming the non-tariff measures in CEFTA 2006.

For all the economies in the global world the question of trade is becoming more important by the day. But the possibility to export on the global market meets many impediments in the form of non-tariff barriers, rather than tariff these days. CEFTA 2006 regional trade integration is not an exception with more than 100 NTBs introduced during its existence. Our research found that Serbia and Albania are CEFTA 2006 signatories with the most NTBs introduced in the observed period. CEFTA has a very efficient institutional mechanism, Subcommittee on Technical Barriers to Trade (TBT) and Non-Tariff Barriers (NTBs), for the removal of NTBs between signatories. We have researched three case studies of bilateral NTBs in Serbia’s intra-CEFTA 2006 which demonstrate that our trade partner uses policy oriented NTBs. The removal of NTBs at the global, as well as regional levels is crucial for the development of trade flows after the world economic crisis.

This paper examines the relationship between the real exchange rate and the foreign trade imbalance in both the Western Balkan (WB) and Central and Eastern European (CEE) countries. During the most recent global economic crisis, examining the impact of the exchange rate on the balance of trade took on a particular importance. Countries used a variety of monetary policy regimes and, depending on their choice, they had different economic instruments available to deal with the crisis. The aim of the research was whether exchange rate devaluation and/or depreciation are capable of effectively and fully eliminating the negative effects of the global economic crisis, as well as the consequent poor export performance and contracted economic activity. Our findings show that during an economic crisis those countries that use their own currency cannot substantially adjust their trade deficit by depreciating their currency. Moreover, it is suggested that during the global economic crisis, the balance of payments deficit is not impacted significantly by the exchange rate, any more. In such cases, other factors play a more significant role, like as government spending, followed by foreign demand and direct investments.

In contemporary international trade we can witness the significant liberalization of international trade regime through tariff cuts and abolishment of non-tariff barriers. But the preferential trade is not possible without the application of Rules of Origin which testify about product nationality and make possible for preferences to be used. But complex and burdensome rules of origin can pose a barrier to international trade. In the situation when we have more global production chains in international trade the rules of origin regime must be made more liberal. This is enabled through several types of origin cumulation practices. Best example is the PEM Convention in Europe that creates a pan-euromediteranian zone of origin cumulation.

This paper explores the economic relations between China and new E.U. member states and Western Balkan countries. China is an important trade partner for these countries, but in recent years the cooperation has been extended to include Chinese foreign direct investments (F.D.I.) inward investment. Using the Poisson pseudo-maximum likelihood (P.P.M.L.) method to estimate a gravity model of bilateral trade, this study analysed the export flows of these countries as a function of total inward F.D.I. and Chinese F.D.I. as well. The results imply that F.D.I. inflows from China significantly increase the bilateral exports of the investigated countries, where F.D.I. has a greater impact on the exports of new E.U. member states than on Western Balkan countries.

The aim of this paper is the analysis of the importance of the beverages sector and concrete trade facilitation measures for CEFTA 2006 economies, in general and for their intra-regional trade, in particular. The paper analyses both trade in beverages of CEFTA 2006 economies and heterogeneous group of barriers that exporters and importers are faced with at the CEFTA 2006 beverages market. Additionally, the paper points to possible solutions for elimination of those barriers through the implementation of selected trade facilitation measures. As the most of problems are related to the trade facilitation and marked as problems that could be easily removed, the most recommendations are based on the WTO Trade Facilitation Agreement measures.

Most of the international trade today takes place through transnational corporations that have changed its structure and directions of activity. The scope of international transactions that occur within transnational corporations is increasingly replacing the classical cross-border forms of import and export of goods and services. The transition process and the opening of Montenegro towards the rest of the world has had its influence on significant inflows of foreign direct investments and the presence of a large number of companies controlled by foreign capital. If we neglected the sales data of foreign corporations' affiliates we would attain a distorted picture of the position of Montenegro in international trade. Through the analysis of the application of FATS statistics, which monitor the operations of these companies in Montenegro, we discovered the economic variables to which the foreign affiliates have made the greatest contribution. Our goal is to assess the benefits of Montenegro's participation in international trade. The focus of the work is on the calculation of the export of Montenegro through the application of this new statistical concept.

The aim of this paper is to explore implementation of measures and existing obstacles from the trade facilitation (TF) domain in the CEFTA 2006 countries. Besides the overall importance and the role of the TF for global economy, as every region has its own specificities, authors of this paper have tried to give an overview from the micro aspect, especially important for small and medium-sized enterprises in the export/import sector. These enterprises are faced with many barriers when participating in the trade process, mostly connected with the lack of customs clearance efficacy (efficiency) and with less effective work of other border agencies. The lack of procedures and their inconsistency in implementation, duplication of procedures, requesting unnecessary documents and their mutual non-recognition, as well as deliberate extension of the process duration continuously cause the loss of goods quality and quantity, and decrease the motivation for dealing with trade. It is obvious that the period of new chances for the world trade has arrived after the Trade Facilitation Agreement (TFA) had been adopted in 2013, as the first agreement since the creation of the WTO, and the first one after almost two decades of its work. But how it really works for an individual trade enterprise, especially when it is situated in the CEFTA 2006 region, will be illustrated in this paper in the example of the trade facilitation issue in auto-parts and beverages sectors.

This paper aims at investigating the role of different trade regimes in determining the bilateral trade of Western Balkan countries and the enlarged European Union between 2001—2010. Special focus is laid on the intra-regional trade of Western Balkan countries and complementarities of this sub-regional trade integration and the EU accession process. Using panel data, we estimated the gravity model of bilateral exports from Western Balkan and Central Eastern European countries to the core EU members in the 2001–2010 period. The results confirm the importance of EU membership for the development of acceding countries’ trade and shed light on asymmetrical trade regimes as important factors of boosting the bilateral trade flows. Additionally, CEFTA 2006 has a significant contribution to intra-regional Western Balkans trade.

The world economic crisis that paralyzed the world economy in 2008 and 2009 had a profound impact on all countries in the world. Due to the interconnectedness of national economies the crisis spread rapidly from its centre in the United States to the world. There were two main transmission channels for the spread of the crisis between countries - international trade and the exchange of private capital between states in the form of foreign direct investment (FDI). This economic downturn has greatly influenced the domestic economic stability of the Western Balkan economies. The Western Balkan countries have shaped their economic policy towards European Union (EU) membership, resulting in a high degree of liberalization in international economic relations accompanied by a commitment to free international capital movement. Since this region has close economic ties with the EU the crisis spread to the region very quickly, manifesting itself in decreasing regional exports to the EU market and a downward trend of FDI inflow to the region. This paper will focus on the impact of the world economic crisis on the Western Balkan economies and especially on their exports and FDI inflow. Our empirical analysis, based on panel data, uses a wider sample of Central and Eastern European Countries (CEEC) which includes the Western Balkans, since we wanted to analyze if the effects of the economic crisis in the Western Balkans are specific or are common to most countries in transition. The analysis shows that Western Balkan exports have suffered due to the crisis, but reveals some interesting results on the different dynamics of export flows which depend on regional trade integration for their destination.