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Constructing an Export Supply Function for Croatia

Author

Listed:
  • Natasa Erjavec

    (Graduate School of Economics and Business)

  • Boris Cota

    (Graduate School of Economics and Business)

Abstract

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 between export supply and production capacity is also subjected to an analysis. As a result, this paper provides some insights into the importance played by the real exchange rate and production capacity in explaining Croatian exports.

Suggested Citation

  • Natasa Erjavec & Boris Cota, 2004. "Constructing an Export Supply Function for Croatia," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 7(Special C), pages 1-16, December.
    • Handle: RePEc:zag:zirebs:v:7:y:2004:i:sci:p:1-16
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    More about this item

    Keywords

    export supply; unit root tests; cointegration; VECM model;
    All these keywords.

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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