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Croatian Regional Export Value-Added Chains

Author

Listed:
  • Davor Mance

    (Faculty of Economics and Business, University of Rijeka, 51000 Rijeka, Croatia)

  • Borna Debelić

    (Faculty of Maritime Studies, University of Rijeka, 51000 Rijeka, Croatia)

  • Siniša Vilke

    (Faculty of Maritime Studies, University of Rijeka, 51000 Rijeka, Croatia)

Abstract

This paper examines Croatian Regional Value Chains (RVCs). We use the value chain approach to study supply chains, examining data specifically for Croatia and its proximate trading partners in the European Union, as well as some other European countries. The value added in Croatian exports is statistically related to the value added in the exports of Croatian trading partners. We argue that Croatian RVCs are organized around regional production centers, with proximity to production capacity, raw materials, and customers as driving factors, and thus most of the value added originates in these RVCs. This paper emphasizes the advantages of representing trade through value added over traditional gross trade statistics and highlights the robustness of RVCs in Croatia to global shocks and transportation reliability issues. We conclude that despite its small absolute size, the Croatian economy is dynamically well-integrated into the EU RVCs, which is crucial for increasing business efficiency and competitiveness, notwithstanding the constraints of relatively low returns to scale. Overall, this study contributes to a better understanding of RVCs in Croatia and their potential benefits for Croatia in the global production organization.

Suggested Citation

  • Davor Mance & Borna Debelić & Siniša Vilke, 2023. "Croatian Regional Export Value-Added Chains," Economies, MDPI, vol. 11(8), pages 1-15, July.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:8:p:202-:d:1203780
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    References listed on IDEAS

    as
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    3. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
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