Trade relations and potential of the Western Balkans

Abstract

The subject of this paper is the detection of changes in trade patterns and of the factors that determine Horizontal IIT (HIIT) and Vertical IIT (VIIT) in the Western Balkans. The compilation and estimation of an econometric model of IIT enabled the distinguishing of the determinants of the VIIT and HIIT in two categories: those that have a constant influence on both types of IIT exhibiting their fixed and robust dynamism in trade and those whose behaviour is differentiated and is analogous with the characteristics and the technological incorporation of each type of trade relations. Copyright © 2011 Inderscience Enterprises Ltd.