Exploring Serbia-Kosovo Trade Relations: Achieving Peace through Trade Interdependence?

Abstract

The nexus between trade and peace has been an important and controversial topic among international relations analysts. The phrase 'trade promotes peace', mostly associated with liberal scholars, became rather relevant in the post-Cold War period, linking increased trade with peace-building and comprehensive improvement of relations between parties in conflict. In this paper, the authors argue that Serbia-Kosovo trade interdependence has played a very limited role in the peace-building process. Using data available since 2000, the authors find that relatively stable trade relations and an improved institutional free-trade framework (CEFTA 2006) has failed to prevent major political disputes between Serbia and Kosovo (such as violence of 2004 and promulgation of the Declaration of Independence in 2008). At the end, the article provides several alternative explanations as to why trade interdependence was not a key determinant for long-term peace between Serbia and Kosovo.