Export Performance and Geography in Croatia
This paper uses the gravity model to analyze whether the varying export performance of Croatian counties can be explained by their proximity to border gates, ports, and other county-specific characteristics. The analysis finds that longer distances...
| Main Authors: | , , |
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| Language: | English en_US |
| Published: |
World Bank Group, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/08/19924969/export-performance-geography-croatia http://hdl.handle.net/10986/19394 |
| Summary: | This paper uses the gravity model to
analyze whether the varying export performance of Croatian
counties can be explained by their proximity to border
gates, ports, and other county-specific characteristics. The
analysis finds that longer distances to border gates
increase trade frictions significantly for many product
categories, although these frictions have been decreasing
between 2007 and 2012. The paper analyzes the county
specific factors that are associated with variation in
export performance, net of distance. Results show that
exports are strongly and positively correlated with motorway
and road density, the size of the labor force, low-skill
ratio, and the number of patents. These variables are also
associated with a greater diversity of exports in terms of
products and destinations. Several general policy
implications are highlighted. The significant association
between motorway and road density and export volume, number
of destinations, as well as the diversity of exported
products may indicate that improvements in connectivity and
facilitation of transport could still play a significant
role in enhancing regional trade outcomes. Similarly, good
performance in research and development may significantly
help to spur competitiveness and allow local producers to
enter new markets in products and destinations, which in
turn can increase the level of diversification and boost
resilience to global economic shocks. |
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