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The structure and quality upgrading of Croatian exports to EU15 market

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  • Stojcic, Nebojsa
  • Hashi, Iraj

Abstract

This paper aims to explore the changes in the structure of Croatian exports to EU15 market. Our analysis is nested in the wide body of literature which postulates that the structure of exported products has important role for explaining the ability of nations to grow and to provide their citizens with better standard of living. Substantial body of evidence points that, following demise of central planning, most transition economies penetrated market of EU15 countries as producers of price-competitive products but that over time some of them shifted to quality-competitive segments of market. Our investigation aims to identify whether there has been a change in the structure of Croatian exports to EU15 market, if any change was of inter- or intra-industry type and how the quality of Croatian exports to this market can be improved. To address these issues we apply dynamic shift and share and dynamic panel methodologies to a panel of 89 3-digit manufacturing industries in the period between 2001 and 2007. Our results indicate that, over the years, Croatian exporters to EU15 market have shifted from low technology intensive towards high technology intensive industries but within these sectors Croatian trade with EU15 had all the characteristics of vertical intra-industry trade, a pattern typical for exchange between developed and developing economies. Furthermore, investment in new technology, innovations and import-led spillovers have key role in improvements in the relative quality of exports.

Suggested Citation

  • Stojcic, Nebojsa & Hashi, Iraj, 2011. "The structure and quality upgrading of Croatian exports to EU15 market," MPRA Paper 108761, University Library of Munich, Germany, revised May 2011.
    • Handle: RePEc:pra:mprapa:108761
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    File URL: https://mpra.ub.uni-muenchen.de/108761/1/MPRA_paper_108761.pdf
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    References listed on IDEAS

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    Cited by:

    1. Bastos, Paulo & Silva, Joana, 2010. "The quality of a firm's exports: Where you export to matters," Journal of International Economics, Elsevier, vol. 82(2), pages 99-111, November.
    2. Stojcic, Nebojsa, 2011. "The Competitiveness of exporters from Croatian manufacturing industry," MPRA Paper 109128, University Library of Munich, Germany.
    3. Stojcic, Nebojsa & Becic, Marija & Vojinic, Perica, 2011. "Decision to export and decision to innovate: Empirical evidence on firm behaviour in CEECs and SEECs," MPRA Paper 109129, University Library of Munich, Germany.
    4. Heri Beziæ & Tomislav Galoviæ & Petar Miševiæ, 2016. "The key goal of this research is to empirically determine the effects of terrorism on FDI of the selected EU and EEA member countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 34(2), pages 333-362.
    5. Nebojsa Stojcic & Djuro Benic & Petra Karanikic, 2014. "Regional determinants of export competitiveness in Croatian manufacturing industry," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 32(2), pages 193-212.

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    More about this item

    Keywords

    competitiveness; trade; growth; quality upgrading; manufacturing;
    All these keywords.

    JEL classification:

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

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