<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper examines the relationship between financial development and international trade in Croatia over the period from the first quarter of 1997 and the last quarter of 2015. The autoregressive distributed lag (ARDL) bounds testing approach to cointegration is applied to examine the long-run and short-run relationships among the series. The research hypothesis is accepted and the relationship between financial development and international trade in Croatia is established and confirmed. The research results reveal unidirectional Granger causality from financial development to international trade at the 10% significance level, and negative long-run and the positive short-run relationships between financial developments and international trade in Croatia.</p></abstract>

This paper examines the relationship between financial development and international trade in Croatia over the period from the first quarter of 1997 and the last quarter of 2015. The autoregressive distributed lag (ARDL) bounds testing approach to cointegration is applied to examine the long-run and short-run relationships among the series. The research hypothesis is accepted and the relationship between financial development and international trade in Croatia is established and confirmed. The research results reveal unidirectional Granger causality from financial development to international trade at the 10% significance level, and negative long-run and the positive short-run relationships between financial developments and international trade in Croatia.

Examining the Relationship between Financial Development and International Trade in Croatia

South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

This paper examines the relationship between financial development and international trade in Croatia over the period from the first quarter of 1997 and the...

Examining the Relationship between Financial Development and International Trade in Croatia

Published Online: Jul 06, 2017

Page range: 80 - 88

DOI: https://doi.org/10.1515/jeb-2017-0009

Keywords
financial development, international trade, Croatia

© 2017 South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Examining the Relationship between Financial Development and International Trade in Croatia

Published Online: Jul 06, 2017

Page range: 80 - 88

DOI: https://doi.org/10.1515/jeb-2017-0009

Keywordsfinancial development, international trade, Croatia

© 2017 South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
financial development, international trade, Croatia