1.Karadeniz ve Balkan Ekonomik ve Politik Araştırmalar Sempozyumu

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Analysis of Bilateral Trade Between EU-15 and Selected Balkans and Black Sea Countries
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indicates that exports from BBSCs rise on average by 6.2% (in the fixed effect model). As expected the distance
variable has a negative sign in the pooled-OLS specification; it means the increase of distance between BBSCs and
the EU-15 leads to decrease the volume of trade by 1 %. On the other hand, the coefficient of RTA is not statisti-
cally significant. However we know that Balkan countries have been signed Stabilization and Association Agree-
ments (SAAs). These agreements allow the BBSCs’ exports to enter the EU-15 market without facing any customs
duties or any similar barriers. Only few commodities (mostly agricultural ones) enter the EU-15 market under
some obligations. Therefore it is expected that the sign of RTA in our model should be positive. According to our
results it is positive but as we said it before it is not statistically significant.
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