Though Western Balkan countries have enjoyed respectable growth rates over the past five years, they now face a shifting international and domestic environment. Trade preferences are eroding, export competition is increasing, and the easier phase of post-transition growth is waning. In order to reduce still-high poverty rates and work toward EU accession, Western Balkan countries need to improve and then sustain their economic growth performance. Western Balkan Integration and the EU examines topics related to current account imbalances, export patterns, regional integration in goods and provision of services, labor costs, the investment climate, and foreign direct investment. It suggests that countries in the region could reap sustained growth payoffs and enhanced EU accession prospects by deepening regional integration, improving human capital, reducing telecommunication costs, and pre-empting energy shortages. Aimed at the audiences of economic and social policy makers,...

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