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Tourism, welfare and real estate market in small open economy: the case of Croatia

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Author Info

  • Ivo Družić

    ()
    (Faculty of Economics and Business, University of Zagreb)

  • Vladimir Čavrak

    ()
    (Faculty of Economics and Business, University of Zagreb)

  • Josip Tica

    ()
    (Faculty of Economics and Business, University of Zagreb)

Abstract

The paper investigates effects of the tourism boom on the real estate market in Croatia. According to the general equilibrium models of the tourism intensive small open economy, the most important benefit of the tourism is reflected in the fixed-factors rents, namely real estate market rents. This paper investigates results of the small open tourism intensive economy theoretical model in the case of the transition and EU accession of the Croatian economy. Analysis is focused on the real exchange rate changes in the tourism sector as the main source of welfare improvements and its effects on the fixed-factor prices in Croatia.

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File URL: http://web.efzg.hr/repec/pdf/Clanak%2007-07.pdf
File Function: First version, 2007
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Bibliographic Info

Paper provided by Faculty of Economics and Business, University of Zagreb in its series EFZG Working Papers Series with number 0707.

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Length: 12
Date of creation: 29 May 2007
Date of revision:
Handle: RePEc:zag:wpaper:0707

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Keywords: tourism; real estate; development; EU enlargement; Croatia;

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