The purpose of this study is to give a clear picture of the development of Albania's foreign trade in a long time from the 16th century to the present day. It will also address the features of each period and the most important trade agreements. Given the favorable geographic position Albania has had trade relations with a large number of states but these relations have greatly influenced the policies pursued by our country over the years. Albania's foreign trade liberalization was not an immediate process and act. This process initially started with breaking the state monopoly on foreign trade, which was initiated by the privatization and overall liberalization of the economy, initially from the legal point of view to that of the laws adopted by the democratic parliament, and then gradually being implemented by the side of executive power.
The causes that make international trade cooperation necessary are related to: uneven distribution of production factors, changes in taste and consumption, economies of scale, absolute and realistic output advantages, climate factors, economic and geographical proximity, international transfer technology, international labor migration, and so on. States that transformed their power from communism to democracy faced such economic problems that are solved during the economic transition period. One of them is Albania, which still seems to have been hostage to the transition process. Another important point of this topic will be the relations between Albania and Kosovo.
How did they walk? How would a customs union affect the development between the two countries? Has the development of the nation's path awaited the development of trade relations? How is the level of exports and imports between them? These will be some of the points that will be answered in this study.
Table of Contents
CHAPTER I Developing trade from the first trading relationship to the communist era
1.1 The beginnings of foreign trade development in Albania
1.2 Developing foreign trade after the declaration of Independence
1.3 Foreign trade during the years 1920-1944
1.4 Economic exchanges during communism
CHAPTER II Developing foreign trade and its steps after isolation
2.1 Foreign trade indicators after changing the system
2.2 Albania's foreign trade developments during the transition period
2.3 Export-Import Performance 1993-2000
2.4 Freight trade for the period 2000 – 2016
2.5 Trade Agreements
CHAPTER III Trade relations between Albania and Kosovo
3.1 Trade relations between Albania and Kosovo
3.2 Economic Cooperation Albania - Kosovo, Opportunities
3.3 Albania-Kosovo trade, development generator or alarm indicator
3.4 Trade exchanges between the two countries
3.5 The political context for deepening bilateral cooperation
3.6 The legal and administrative context of bilateral cooperation
3.7 The main obstacles to economic and trade co-operation between the two countries
3.8 Customs union, benefits and cost
3.9 Policy Coordination instead of Political Coordination
Research Objectives and Themes
This study aims to provide a comprehensive analysis of the evolution of Albania's foreign trade from the 16th century to the present, while specifically evaluating the current economic and trade relations between Albania and Kosovo to identify pathways for sustainable integration.
- Historical development of Albanian foreign trade regimes and key trade agreements.
- Economic transition and structural shifts in trade after the collapse of the communist system.
- Evaluation of trade performance, exchange rate policy, and the impact of regional integration projects.
- Analysis of trade barriers and logistical challenges affecting economic cooperation between Albania and Kosovo.
- Assessment of potential scenarios for enhanced bilateral integration, including a customs union versus a common market.
Excerpt from the Book
3.1 Trade relations between Albania and Kosovo
Apart from sharing shared historical and national aspects, Albania and Kosovo are also two important trading partners. For Albania, Kosovo ranks third in the ranking of export states (7% of total exports), 2 while for Kosovo Albania ranks second (15% of total exports) in the export countries' rankings at the end of 2013.2 Albania's exports to in Kosovo are mainly composed of basic metals (52%) and mineral products (30%). Kosovo's exports to Albania are also dominated by basic metals (54%), but vegetable products, prepared foods, beverages and tobacco account for a very high share of about 32%. Although Albania and Kosovo are important trading partners, exports from Kosovo account for only 1% of imports into Albania, while exports from Albania account for only 4.5% of imports into Kosovo. Imports from Albania are covered only to the extent of 40% with exports from Kosovo.
On January 11, 2014, the Government of the Republic of Kosovo and the Council of Ministers of the Republic of Albania signed a framework agreement aimed at fostering cooperation and facilitating trade. The agreement aimed at facilitating transit of goods across two territories and increasing transit capacities. The agreement contained the following main points: a) areas of cooperation; b) improving the exchange of electronic information; c) harmonization and simplification of transit procedures; d) Improving the implementation of customs declaration; and e) the creation of joint working groups for the elimination of non-tariff barriers.
Summary of Chapters
CHAPTER I Developing trade from the first trading relationship to the communist era: This chapter outlines the historical evolution of Albanian trade from the 16th century through the development of local markets and capitulations, ending with the economic exchanges under the communist era.
CHAPTER II Developing foreign trade and its steps after isolation: This chapter analyzes the fundamental systemic changes in the 1990s, the liberalization of foreign trade, the impact of various reforms, and the performance of exports and imports up to 2016.
CHAPTER III Trade relations between Albania and Kosovo: This chapter examines the bilateral trade dynamics between Albania and Kosovo, identifying structural trade deficits and proposing cooperative strategies to overcome administrative and non-tariff barriers.
Keywords
Albania, Kosovo, Foreign Trade, Economic Cooperation, Trade Agreements, Customs Union, Market Liberalization, Transition Economy, Export Performance, Import Dynamics, CEFTA, Bilateral Relations, Economic Development, Trade Barriers, Integration
Frequently Asked Questions
What is the core focus of this publication?
The work provides a detailed historical and contemporary analysis of Albania's foreign trade development, with a specific focus on the trade relationship between Albania and Kosovo.
What are the primary themes discussed in the study?
The main themes include historical trade evolution, the impact of the transition from a command economy to a market-oriented system, regional trade logistics, and the administrative challenges of bilateral cooperation.
What is the primary objective of the research?
The primary goal is to assess the trade landscape of Albania and evaluate how economic cooperation between Albania and Kosovo can be improved through strategic policy coordination and the removal of trade barriers.
Which methodologies are employed in the study?
The study utilizes a descriptive and analytical approach, incorporating statistical data from ISTAT, historical economic review, and an assessment of current legal and trade agreements like CEFTA.
What is covered in the main body of the text?
The main body covers the historical progression of trade, the liberalization processes post-1990, detailed performance indicators of exports and imports, and specific scenarios for economic integration between Albania and Kosovo.
What are the characterizing keywords for this study?
Key terms include Albania, Kosovo, Foreign Trade, Economic Cooperation, Trade Agreements, Customs Union, and Market Liberalization.
How did the 1990s transition influence Albania's foreign trade?
The transition forced a deep and intensive liberalization of the trade sector, shifting the country from state-controlled economic isolation to an open market economy with growing trade flows toward Western countries.
What role does the Durrës-Kukës-Morinë highway play in trade?
While intended to boost trade, the highway has largely acted as a transit route for trade with third countries, and its impact on direct bilateral trade volumes between Albania and Kosovo has been less significant than initially hoped.
Why is the trade structure between Albania and Kosovo considered "anemic"?
The trade balance is characterized by a reliance on low-value raw materials and metals, lacking in diversified, high-value-added final products, which limits the economic profitability of bilateral exchange.
- Quote paper
- PhD Arjeta Hallunovi (Author), 2019, Albania's foreign trade over the years and relations with Kosovo, Munich, GRIN Verlag, https://www.grin.com/document/479070
