Title: International trade of goods as a determinant of GDP growth in Croatia

Authors: Ivan Kovač; Mirko Palić; Damir Mihanović

Addresses: Croatian Bureau of Statistics, Ilica 3, 10 000 Zagreb, Croatia. ' Faculty of Economics and Business, University of Zagreb, Trg J.F. Kennedya 6, 10000 Zagreb, Croatia. ' Kraš, d.d., Ravnice 48, Zagreb, Croatia

Abstract: The main purpose of this paper is to determine an impact of international trade, mainly the exports on the GDP growth in the Republic of Croatia in the period between 2001 and 2010. The paper analyses the influence of the exports of goods on the real GDP growth. The results show that the exports of goods have the lowest positive contribution to the GDP growth rate in the Republic of Croatia in comparison to other countries in the region. The paper explores the level of international trade of goods, imports dependency, exports propensity, degree of openness and involvement of the Republic of Croatia in the international trade of goods. The paper indicates that for the growth and development of the Croatian economy it is necessary not only to increase the exports but also to stress the importance on exports with a higher value added.

Keywords: international trade; exports; gross domestic product; GDP growth; Croatia; import dependency; exporting propensity; degree of openness; value added.

DOI: 10.1504/IJBG.2012.048956

International Journal of Business and Globalisation, 2012 Vol.9 No.2, pp.134 - 156

Published online: 03 Sep 2012 *

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