The Impact of Financial Integration on Sectoral Polarization between Croatia and Eurozone Countries (CROSBI ID 73149)
Prilog u knjizi | izvorni znanstveni rad | međunarodna recenzija
Podaci o odgovornosti
Pečarić, Mario ; Tolj, Ante ; Blažić, Helena
engleski
The Impact of Financial Integration on Sectoral Polarization between Croatia and Eurozone Countries
The purpose of this paper is to analyse the impact of financial integration, as measured by bilateral FDI, on sectoral structures in Croatia and eurozone countries. The research objective is to determine whether there is a “bad” specialisation, i.e., a separation of sectoral structures that increases the costs of monetary integration of Croatia. The “bad” specialisation is the result of the inefficient allocation of productive resources to sectors with lower productivity. The research results show that financial integration promotes Croatia’s specialisation and makes the country more vulnerable to the occurrence of idiosyncratic shocks, which increases the costs of Croatia’s monetary integration. Moreover, the process of structural divergence shifts the specialisation of the Croatian economy to non-tradable sectors, making real convergence with more developed euro area countries more difficult. The impact of financial integration on the sectoral structures of Croatia and eurozone countries in the period 2001–2019 is analysed using a panel model. The panel results show that the impact is stronger if we exclude the crisis years. This suggests a stronger polarisation of sectoral structures between Croatia and eurozone countries during periods of larger FDI inflows to Croatia
Financial integration ; sectoral polarization ; Croatia ; Eurozone
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Podaci o prilogu
51-65.
objavljeno
10.1007/978-3-030-99850-9_4
Podaci o knjizi
Real and Financial Sectors in Post-Pandemic Central and Eastern Europe : the Impact of Economic, Monetary, and Fiscal Policy
Olgić Draženović, Bojana ; Buterin, Vesna ; Suljić Nikolaj, Stella
Springer
2022.
978-3-030-99850-9
1431-1933