Gravity Model of Croatian Regional Foreign Trade

Proceedings of 8th International Conference «Economic Integration, Competition and Cooperation», 6-9 April, Opatija, University of Rijeka – Faculty of Economics, CD with Full papers

14 Pages Posted: 20 Mar 2013 Last revised: 21 May 2013

See all articles by Ivo Družić

Ivo Družić

University of Zagreb - Faculty of Economics & Business

Maria Anić

University of Zagreb - Faculty of Economics & Business

Tomislav Sekur

University of Zagreb - Faculty of Economics & Business

Date Written: April 6, 2011

Abstract

Application of the Newton’s law of universal gravitation in explaining international trade has proved to be a successful empirical experiment. The use of relatively simple and easy-to-get data, such as the GDP and distance has made the gravity model particularly popular in explaining trade patterns of transitional economies that lack more sophisticated and longer-series data on foreign trade. One of the main characteristics of a small open economy is the importance of international trade which represents the key determinant in country’s economic growth. For that reason, deeper analysis of this type of a problem is essential and foreign merchandise trade of Croatia suits as a perfect candidate for such analysis. Another significant advantage that stems out of the gravity theory is the possibility of evaluating regional patterns of trade.

Keywords: gravity model, Croatian foreign trade, Western Balkans, regional integration

JEL Classification: F15, F41, F47

Suggested Citation

Družić, Ivo and Anić, Maria and Sekur, Tomislav, Gravity Model of Croatian Regional Foreign Trade (April 6, 2011). Proceedings of 8th International Conference «Economic Integration, Competition and Cooperation», 6-9 April, Opatija, University of Rijeka – Faculty of Economics, CD with Full papers, Available at SSRN: https://ssrn.com/abstract=2232735 or http://dx.doi.org/10.2139/ssrn.2232735

Ivo Družić (Contact Author)

University of Zagreb - Faculty of Economics & Business ( email )

Trg J. F. Kennedyja 6
Zagreb, City of Zagreb 10000
Croatia

Maria Anić

University of Zagreb - Faculty of Economics & Business ( email )

Trg J. F. Kennedyja 6
Zagreb, City of Zagreb 10000
Croatia

Tomislav Sekur

University of Zagreb - Faculty of Economics & Business ( email )

Trg J. F. Kennedyja 6
Zagreb, City of Zagreb 10000
Croatia

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
79
Abstract Views
459
rank
386,561
PlumX Metrics