Stabilization and association agreements in the Western Balkans

According to EU enlargement policy, the main objective of the Stabilization and Association Agreements (SAAs) is not only economic growth and export promotion, but also law enforcement, including various market reforms. In addition to SAAs, the European Union (EU) also supported the Balkans with bilateral Free Trade Agreements (FTAs), followed by general trade preferences and multilateral free trade agreements (CEFTA 2006). This paper examines whether SAAs have been able to accelerate export growth, investment and economic development in the Western Balkans. Based on an empirical analysis of panel data, the main findings confirm that SAAs have not been sufficient to increase exports and consequently reduce the trade deficit of the Western Balkan countries. In addition, a special section is dedicated to Kosovo’s management issues, such as firm development, export promotion, the relationship between management characteristics and export performance and other relevant topics, as Kosovo is the last country in the Western Balkan that is still implementing an SAA.