The impact of customs procedures on business performance: Evidence from Kosovo

Abstract

This paper aims to identify formal and informal institutional factors in customs procedures and their impact on the performance of small and medium-sized enterprises (SMEs) involved in international trade in Kosovo based on a questionnaire carried out in 2009. The econometric findings show that one of the most important obstacles encountered by SMEs are regular appeals against customs decisions, particularly those which reflect frequent changes in over-complicated laws and regulations. However, there is a positive and significant effect of the formal customs instruments that facilitate the trade in imported goods, namely 'customs procedures with economic impact'.