Effects of trade liberalisation in the SEE countries: CEFTA 2006 agreement

Abstract

A key factor for countries in transition is improving their export competitiveness in order to improve the economic performance of the country. The aim of this chapter is an insight into the influence of trade liberalisation within CEFTA 2006 to the member countries. Correlation analysis was used, and bilateral flows between member countries were analysed. The results show a significant influence of trade liberalisation to GDP growth, unemployment rate, public debt, and budget deficit. The results of correlation analysis are not the same for all the member countries. Greater participation in an exchange with other member countries surely would improve poor economic performances of the countries from South-East Europe. Possibilities are present for improving CEFTA 2006 through the further elimination of trade barriers and increase of total trade. The process of the accession to the EU and access to the single market is also determined by the success of CEFTA 2006.