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Revealed Comparative Advantage And Merchandise Exports: The Case Of Merchandise Trade Between Croatia And The Rest Of The European Union Member Countries

Author

Listed:
  • Vlatka Bilas

    (University of Zagreb)

  • Mile Bosnjak

    (SKDD – CCP Smart Clear Ltd, Zagreb, Croatia)

Abstract

The main objective of this paper is to explore the relationship between merchandise exports and revealed comparative advantage (RCA) indicators of Croatian exports on the European Union (EU) market. For this purpose the main hypothesis is defined as follows: a Croatian merchandise export is positively correlated with RCA indicators on the EU market. Based on the empirical tests and using the defined econometric model for the period 1995-2012, the main hypothesis of research was confirmed; meaning correlation between indicators of RCA in merchandise exports on the EU market in the long and short run is confirmed. Positive and statistically significant relationship was found between RCA in export of raw materials excluding fuel and level of merchandise export as well as RCA in export of machinery and transport vehicles and level of merchandise export.

Suggested Citation

  • Vlatka Bilas & Mile Bosnjak, 2015. "Revealed Comparative Advantage And Merchandise Exports: The Case Of Merchandise Trade Between Croatia And The Rest Of The European Union Member Countries," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 24(1), pages 29-47, june.
    • Handle: RePEc:avo:emipdu:v:24:y:2015:i:1:p:29-47
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    References listed on IDEAS

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    More about this item

    Keywords

    revealed comparative advantage; merchandise export; Croatia; European Union;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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