Alketa Vangjeli

Impact of Trade Openness on Albania's Foreign Trade: a Gravity Model of Trade Flows Alketa Vangjeli

The connection between the trade policy and economic performance has been debated for more than one century. The issues regarding trade liberalization are still a subject of the further theoretical discussion and the empirical investigation, because of the contradiction of the larger empirical literature on the trade policy and economic performance. Thus, the main aim of this book is to investigate the effects of trade liberalization and integration on the foreign trade flows. We are based on the existing theories of the effects of trade liberalization on the economy and particularly the theoretical and empirical applications in the trade literature to estimate critically the implications of trade liberalization on the economic performance. This book also provides a detailed survey and analysis of the trade flows' structure and geography of Albania using information from reliable national and international sources. Further, an augmented gravity model is applied empirically to investigate the impact of trade openness on the trade flows of Albania. Lastly, some policy recommendations are offered for public institutions, government and all interest groups in Albania's foreign trade.