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Firm-level intra-industry links in Croatia’s tourism industry

Author

Listed:
  • Alen Host

    (University of Rijeka, Faculty of Economics, Ivana Filipoviæa 4, 51000 Rijeka, Croatia)

  • Vinko Zaninoviæ

    (University of Rijeka, Faculty of Economics, Ivana Filipoviæa 4, 51000 Rijeka, Croatia)

  • Petra Adelajda Mirkoviæ

    (University of Rijeka, Faculty of Economics, Ivana Filipoviæa 4, 51000 Rijeka, Croatia)

Abstract

In this paper we investigate firm level activity in Croatian tourism industry. Our analysis is based on the sample of more than 10,000 firms obtained from Bureau van Dijk database for the period 2006-2015. Theoretical basis of our paper is the Gibrat’s law, which states that firm size and growth rate are independent of each other. Within tourism industry, we differentiate between supporting divisions and the main industry division (accommodation industry), and test the Law on firms in supporting divisions using modified hybrid estimator. In that way, we add to the existing field of knowledge in two ways: through analysis and quantification of intra-industry links within the Law’s framework and by employing hybrid estimator originally developed by Mundlak, which is a novelty in this field of research. Although, our findings do not confirm the Law, we are able to discern supporting tourism industry divisions whose growth is highly determined by the growth of accommodation industry.

Suggested Citation

  • Alen Host & Vinko Zaninoviæ & Petra Adelajda Mirkoviæ, 2018. "Firm-level intra-industry links in Croatia’s tourism industry," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 36(1), pages 243-262.
    • Handle: RePEc:rfe:zbefri:v:36:y:2018:i:1:p:243-262
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    References listed on IDEAS

    as
    1. D.B. Audretsch & L. Klomp & E. Santarelli & A.R. Thurik, 2004. "Gibrat's Law: Are the Services Different?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(3), pages 301-324, May.
    2. Alex Coad, 2009. "The Growth of Firms," Books, Edward Elgar Publishing, number 13424.
    3. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    4. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
    5. Katja Zajc Kejžar & Èrt Kostevc & Vinko Zaninoviæ, 2016. "The role of regional economic integrations for trade margins: A case of Croatia," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 34(1), pages 11-41.
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    7. Pratt, Stephen, 2015. "The economic impact of tourism in SIDS," Annals of Tourism Research, Elsevier, vol. 52(C), pages 148-160.
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    More about this item

    Keywords

    industrial organization; tourism industry; Gibrat’s law;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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