engleski

Econometric Modeling of Determinants of High Value Added Services Sector Export of Republic of Croatia on to the European Union Market

The subject of analysis in this paper are determinants of the high value-added services of the export sector of the Republic of Croatia on the European Union market since Croatia is mainly connected with members of this regional integration. High value-added services (information and communication ; professional, scientific and technical ; administrative and associate services) show horizontal importance in impacting productivity growth and economic development in the whole through knowledge spillovers, ideas and efficiency growth within traditional business sectors, such as agriculture, manufacture, transportation and construction, which enables them to move at higher levels in value added chain. By applying the gravity model on the panel data, it has been validated that determinants such as territorial or sea border between countries, distance between major capitals of two countries and the level of network readiness index correlate positively with the level of Croatian high value-added service sector export on the European Union market. On the other hand, the determinants that have been identified as the most significant determinants of international goods and services trade in existing literature, such as GDP per capita, population, economic freedom index, corruption perception index, inflow and outflow of foreign direct investment and Linder's variable, do not show statistical significance in the estimated gravity model of the Croatian high value-added service sector on the European Union market.

Determinants, Gravity model, Export, Republic of Croatia, Services, Value added

nije evidentirano