Does international trade cause regional growth differentials in Croatia?
The purpose of this research is to investigate the role of international trade in the process of regional convergence in Croatia. Previous empirical and theoretical studies usually argued that international competitiveness and export orientation promotes regional convergence...
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| Format: | Article |
| Language: | deu |
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Faculty of Economics University of Rijeka
2015-06-01
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| Series: | Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu |
| Subjects: | |
| Online Access: | https://www.efri.uniri.hr/sites/efri.uniri.hr/files/cr-collections/2/01-mikulic-galic-2015-1.pdf |
| _version_ | 1819082641880645632 |
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| author | Davor Mikulić Andrea Galić Nagyszombaty |
| author_facet | Davor Mikulić Andrea Galić Nagyszombaty |
| author_sort | Davor Mikulić |
| collection | DOAJ |
| description | The purpose of this research is to investigate the role of international trade in the
process of regional convergence in Croatia. Previous empirical and theoretical
studies usually argued that international competitiveness and export orientation
promotes regional convergence and enables less developed regions to increase
economic growth through enhanced productivity and efficiency. The main hypothesis
tested is that international trade is less significant in explaining regional growth
differentials in Croatia. The method used for the analysis is a panel data model
which is based on conditional convergence hypothesis. The model is oriented to
identification of factors which explain growth differentials of Croatian counties,
including variables related to international competitiveness. The fundamental result
obtained is empirical evidence for conclusion that international trade is not to be
assumed as a key determinant of the regional convergence process in Croatia.
Regional growth in Croatia is primarily determined by quality of human capital,
investments in fixed assets and structural features of individual Croatian counties.
The main conclusion on the basis of the results is that in the past period, regional
growth was primarily determined by domestic demand of households and
government. The highest growth was recorded in counties in which public funds
were invested in infrastructural projects and counties specialised in production of
services for personal consumption. However, the role of international trade in the
regional economic growth can be more pronounced in the future as a result of limited
domestic demand. Improved international competitiveness is a prerequisite for
successful and sustainable regional development. |
| first_indexed | 2024-12-21T20:19:54Z |
| format | Article |
| id | doaj.art-c6883ad6bd8040ffbff76f1b3802328c |
| institution | Directory Open Access Journal |
| issn | 1331-8004 1331-8004 |
| language | deu |
| last_indexed | 2024-12-21T20:19:54Z |
| publishDate | 2015-06-01 |
| publisher | Faculty of Economics University of Rijeka |
| record_format | Article |
| series | Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu |
| spelling | doaj.art-c6883ad6bd8040ffbff76f1b3802328c2022-12-21T18:51:31ZdeuFaculty of Economics University of RijekaZbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu1331-80041331-80042015-06-0133181102Does international trade cause regional growth differentials in Croatia?Davor Mikulić0Andrea Galić Nagyszombaty1Croatia, Institute of Economics Zagreb, Trg J. F. Kennedy 7, 10000 ZagrebCroatia, Croatian Bureau of Statistics, Ilica 3, 10000 ZagrebThe purpose of this research is to investigate the role of international trade in the process of regional convergence in Croatia. Previous empirical and theoretical studies usually argued that international competitiveness and export orientation promotes regional convergence and enables less developed regions to increase economic growth through enhanced productivity and efficiency. The main hypothesis tested is that international trade is less significant in explaining regional growth differentials in Croatia. The method used for the analysis is a panel data model which is based on conditional convergence hypothesis. The model is oriented to identification of factors which explain growth differentials of Croatian counties, including variables related to international competitiveness. The fundamental result obtained is empirical evidence for conclusion that international trade is not to be assumed as a key determinant of the regional convergence process in Croatia. Regional growth in Croatia is primarily determined by quality of human capital, investments in fixed assets and structural features of individual Croatian counties. The main conclusion on the basis of the results is that in the past period, regional growth was primarily determined by domestic demand of households and government. The highest growth was recorded in counties in which public funds were invested in infrastructural projects and counties specialised in production of services for personal consumption. However, the role of international trade in the regional economic growth can be more pronounced in the future as a result of limited domestic demand. Improved international competitiveness is a prerequisite for successful and sustainable regional development.https://www.efri.uniri.hr/sites/efri.uniri.hr/files/cr-collections/2/01-mikulic-galic-2015-1.pdfregional growthinternational competitivenesseconomic growthCroatia |
| spellingShingle | Davor Mikulić Andrea Galić Nagyszombaty Does international trade cause regional growth differentials in Croatia? Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu regional growth international competitiveness economic growth Croatia |
| title | Does international trade cause regional growth differentials in Croatia? |
| title_full | Does international trade cause regional growth differentials in Croatia? |
| title_fullStr | Does international trade cause regional growth differentials in Croatia? |
| title_full_unstemmed | Does international trade cause regional growth differentials in Croatia? |
| title_short | Does international trade cause regional growth differentials in Croatia? |
| title_sort | does international trade cause regional growth differentials in croatia |
| topic | regional growth international competitiveness economic growth Croatia |
| url | https://www.efri.uniri.hr/sites/efri.uniri.hr/files/cr-collections/2/01-mikulic-galic-2015-1.pdf |
| work_keys_str_mv | AT davormikulic doesinternationaltradecauseregionalgrowthdifferentialsincroatia AT andreagalicnagyszombaty doesinternationaltradecauseregionalgrowthdifferentialsincroatia |