TRADE REGIME AND ANALYSIS OF TRADE FLOWS WITH KOSOVO.

Trade between customs territories of Serbia proper and Kosovo is highly influenced by political factors and insecurity. Nevertheless, after 2006, this trade has constituted around 4% of exports from Serbia according to the official trade statistics. In this paper we explore the conditions for trade between Serbia proper and Kosovo, focusing particularly on the trade regime. This regime is defined by an abundance of by-laws that are often contradictory and ambiguous. In addition to examining official trade flows, we use field research in order to estimate the grey trade flows between the two customs territories. Putting aside the political situation connected to the unresolved status of Kosovo, the trade between Serbia proper and Kosovo is highly significant, especially if we take into account the grey trade flows, and it can have significant and broad social and political effects. [ABSTRACT FROM AUTHOR]