Export Performance and Geography in Croatia

36 Pages Posted: 20 Apr 2016 Last revised: 27 Apr 2018

See all articles by Erhan Artuc

Erhan Artuc

World Bank; World Bank - Development Research Group (DECRG)

Mariana Iootty

World Bank

Ana Florina Pirlea

World Bank

Mariana Iootty De Paiva Dias

affiliation not provided to SSRN

Date Written: August 1, 2014

Abstract

This paper uses the gravity model to analyze whether the varying export performance of Croatian counties can be explained by their proximity to border gates, ports, and other county-specific characteristics. The analysis finds that longer distances to border gates increase trade frictions significantly for many product categories, although these frictions have been decreasing between 2007 and 2012. The paper analyzes the county specific factors that are associated with variation in export performance, net of distance. Results show that exports are strongly and positively correlated with motorway and road density, the size of the labor force, low-skill ratio, and the number of patents. These variables are also associated with a greater diversity of exports in terms of products and destinations. Several general policy implications are highlighted. The significant association between motorway and road density and export volume, number of destinations, as well as the diversity of exported products may indicate that improvements in connectivity and facilitation of transport could still play a significant role in enhancing regional trade outcomes. Similarly, good performance in research and development may significantly help to spur competitiveness and allow local producers to enter new markets in products and destinations, which in turn can increase the level of diversification and boost resilience to global economic shocks.

Keywords: International Trade and Trade Rules, Real & Intellectual Property Law, Social Policy, Intellectual Property Rights, Legal Products, Common Property Resource Development, Legal Reform, Regulatory Regimes, Judicial System Reform, Legislation, Textiles, Apparel & Leather Industry, Food & Beverage Industry, Business Cycles and Stabilization Policies, Pulp & Paper Industry, Common Carriers Industry, Construction Industry, Plastics & Rubber Industry, General Manufacturing, Transport Services, Ports & Waterways

Suggested Citation

Artuc, Erhan and Iootty, Mariana and Pirlea, Ana Florina and Iootty De Paiva Dias, Mariana, Export Performance and Geography in Croatia (August 1, 2014). World Bank Policy Research Working Paper No. 6999, Available at SSRN: https://ssrn.com/abstract=2478090

Erhan Artuc (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Mariana Iootty

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Ana Florina Pirlea

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Mariana Iootty De Paiva Dias

affiliation not provided to SSRN

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