engleski

Constructing an Export Supply Function for Croatia

The main aim of this paper is investigation of the interplay between Croatian export supply and the real exchange rate, i.e., the relative prices. We analyse here the price elasticity of export supply through modelling both the short- and the long-run structures of the model. Additionally, the relationship betwen export supply and production capacity was also subjected to the analysis. As a result, this paper provides some insights into the importance played by the real exchange rate and production capacity in explaining total Croatian exports.

export supply; unit root tests; cointegration; VECM model

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