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The Competitiveness of Exports from Manufacturing Industries in Croatia and Slovenia to the EU-15 Market: A Dynamic Panel Analysis

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  • Nebojsa Stojcic

    (Department of Economics and Business Economics, University of Dubrovnik, Croatia)

  • Marija Becic

    (Department of Economics and Business Economics, University of Dubrovnik, Croatia)

  • Perica Vojinic

    (Department of Economics and Business Economics, University of Dubrovnik, Croatia)

Abstract

It is often stated that the growth prospects of nations are closely related to patterns of competitiveness exercised by their firms and industries in the international market. Building on foundations of endogenous growth and new trade theories academics and policy-makers postulate that quality-driven competitiveness bears higher growth potential than the ability to compete in terms of prices. The transition of Central and Eastern European Countries has been characterised by movement from the latter towards the former pattern of competitiveness. This process was facilitated by the transfer of knowledge and skills through the outsourcing of production from their most important trading partners, the West European members of the European Union (EU-15 countries), which paved the way for the development of intra-industry trade. This paper explores the competitiveness of manufacturing industries from Croatia and Slovenia in the EU-15 market. Using dynamic panel analysis we find that between 2002 and 2007 producers from the two countries followed different patterns of competitiveness. While in Slovenia the quality of exports is the main determinant of EU-15 market share, the competitiveness of Croatian producers still depends on their labour costs. We also find a strong impact of intra-industry trade on the competiveness of industries from the two countries in the EU-15 market.

Suggested Citation

  • Nebojsa Stojcic & Marija Becic & Perica Vojinic, 2012. "The Competitiveness of Exports from Manufacturing Industries in Croatia and Slovenia to the EU-15 Market: A Dynamic Panel Analysis," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 14(1), pages 69-105, April.
  • Handle: RePEc:iez:survey:ces-v14_04-2012_stojcic-becic-vojinic
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    Cited by:

    1. Annamaria Kazai Ónodi, 2014. "Export Performance Clusters of the Hungarian Enterprises: What Factors are Behind the Successful Export Activities?," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 2(4), pages 9-29.
    2. Stojcic, Nebojsa, 2011. "The Competitiveness of exporters from Croatian manufacturing industry," MPRA Paper 109128, University Library of Munich, Germany.

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    More about this item

    Keywords

    competitiveness; manufacturing industries; dynamic panel analysis; Croatia; Slovenia;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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