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Examining the Export-led Growth Hypothesis: The case of Croatia

Author

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  • Bilas Vlatka
  • Franc Sanja

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

  • Bošnjak Mile

    (SKDD – CCP Smart Clear Ltd Zagreb, Croatia)

Abstract

This paper examines the relationship between gross domestic product and exports of goods and services in Croatia between 1996 and 2012. The research results confirmed unidirectional Granger causality from the exports of goods and services to gross domestic product. Following the Engle-Granger approach to cointegration, long-term equilibrium as well as short-term correlation between the observed variables was identified. Exports of goods and services and gross domestic product (GDP) in Croatia move together. If the two observed variables move away from equilibrium, they will return to their long-term equilibrium state at a velocity of 24.46% in the subsequent period. In accordance with the results, we found evidence supporting the export-led growth hypothesis in Croatia. As the outcomes indicated, to recover the economy, Croatia should put more emphasis on the development of exporting sectors.

Suggested Citation

  • Bilas Vlatka & Franc Sanja & Bošnjak Mile, 2015. "Examining the Export-led Growth Hypothesis: The case of Croatia," Naše gospodarstvo/Our economy, Sciendo, vol. 61(3), pages 22-31, June.
    • Handle: RePEc:vrs:ngooec:v:61:y:2015:i:3:p:22-31:n:2
    DOI: 10.1515/ngoe-2015-0010
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    Cited by:

    1. Rahmi Cetin & Robert Ackrill, 2017. "Openness and Growth in Challenging Times: Analysing the trade-growth nexus for Slovakia," NBS Discussion Papers in Economics 2017/08, Economics, Nottingham Business School, Nottingham Trent University.
    2. Mukesh Kumar & Nargis & Azeema Begam, 2020. "Export-Led Growth Hypothesis: Empirical Evidence from Selected South Asian Countries," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 8(1), pages 1-15, March.
    3. Nicholas M. Odhiambo, "undated". "Is Export-Led Growth Hypothesis Still Valid For Sub-Saharan African Countries? New Evidence From Panel Data Analysis," Working Papers AESRI01, African Economic and Social Research Institute (AESRI).
    4. N.M. Odhiambo, 2021. "Is Export-Led Growth Hypothesis Still Valid for Sub-Saharan African Countries? New Evidence from Panel Data Analysis," Working Papers AESRI-2021-02, African Economic and Social Research Institute (AESRI), revised Jan 2021.
    5. Yağmur Sağlam & Hüseyin Avni Egeli, 2018. "A Comparison of Domestic Demand and Export-led Growth Strategies for European Transition Economies," Foreign Trade Review, , vol. 53(3), pages 156-173, August.
    6. Vlatka Bilas, 2018. "World Trade Organization and regional economic integrations: together in future or not?," International Studies, Libertas International University, vol. 18(1-2), pages 49-64.
    7. Sanja Franc & Antea Barišić & Zoran Wittine, 2020. "The Dilemma over Washington Consensus Guidelines or Industrial Policy: Lessons from Croatia," Notitia - journal for economic, business and social issues, Notitia Ltd., vol. 1(6), pages 49-62, December.
    8. Cătălina MOTOFEI, 2017. "Vectors of economic growth in the eastern area of the EU," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(610), S), pages 215-226, Spring.
    9. Cătălina MOTOFEI, 2017. "Vectors of economic growth in the eastern area of the EU," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(610), S), pages 215-226, Spring.
    10. Nicholas M. Odhiambo, 2021. "Is export-led growth hypothesis still valid for sub-Saharan African countries? New evidence from panel data analysis," European Journal of Management and Business Economics, Emerald Group Publishing Limited, vol. 31(1), pages 77-93, April.
    11. Mirna Leko Šimić & Antun Biloš & Josipa Mijoč, 2019. "E-business tools adoption and export performance: Empirical evidence from Croatian companies," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 15(4), pages 11-34.
    12. Sasa OBRADOVIĆ & Nemanja LOJANICA, 2019. "Export-Led Growth: Evidence from Post-Communist Serbia," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 131-145, June.
    13. Nicholas M Odhiambo, 2021. "Is Export-Led Growth Hypothesis Still Valid For Sub-Saharan African Countries? New Evidence From Panel Data Analysis," Working Papers AERI0121, African Economic and Social Research Institute (AESRI), revised 25 Aug 2021.

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