engleski

Examining the effects of trade liberalization in Croatia using a gravity model approach

The main goal of this paper is to investigate the effects of trade liberalisation in Croatia. In doing so, we employ data for 26 European Union countries including UK, and cover the period from 2000 to 2021. In this way, we encompass in the analysis two significant effects under the trade liberalisation umbrella, i.e. WTO membership and the EU accession. By using a panel data (over time bilateral trade data), we estimate the system Generalized Method of Moments (GMM) model. The obtained results show that in the observed period, i.e. large part of the period of transition process and the process of EU accession, exports have played a predominant role in shaping economic growth in Croatia.

international trade, European Union, gravity model

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