<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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.</p></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.

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

University of Zagreb, Faculty of Economics and Business, Croatia

SKDD – CCP Smart Clear Ltd Zagreb, Croatia

Naše gospodarstvo/Our economy

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

{"article-title":"Examining the Export-led Growth Hypothesis: The case of Croatia"}

This paper examines the relationship between gross domestic product and exports of goods and services in Croatia between 1996 and 2012. The research results...

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

Published Online: Jun 25, 2015

Page range: 22 - 31

Received: Jan 01, 2015

Accepted: May 01, 2015

DOI: https://doi.org/10.1515/ngoe-2015-0010

Keywords
gross domestic product, export, Croatia, Granger causality

© 2015

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

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

Published Online: Jun 25, 2015

Page range: 22 - 31

Received: Jan 01, 2015

Accepted: May 01, 2015

DOI: https://doi.org/10.1515/ngoe-2015-0010

Keywordsgross domestic product, export, Croatia, Granger causality

© 2015

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

Keywords
gross domestic product, export, Croatia, Granger causality