Original scientific paper
VERTICAL SPECIALIZATION AND INTRA-INDUSTRY TRADE: THE CASE OF CROATIA
Goran Buturac
Edo Rajh
Abstract
This paper examines the structure of intra-industry trade specialization in Croatia and its implication on comparative advantages. Product groups in which intra-industry trade specialization is dominant are determined by applying the GL index. The RCA and RUV indicator are calculated for each product group and are used as variables in k-means cluster analysis. The empirical results indicate that three different clusters of product groups exist in Croatia relative to values of analyzed variables. Vertical specialization is divided into high quality exports and low quality exports. The homogeneous product groups with the highest comparative advantages and highest quality exports are identified for Croatia, and so are those with the lowest comparative advantages and the lowest quality exports. The implications of the research results are discussed.
Keywords
intra-industry trade; vertical specialization; horizontal specialization; comparative advantages; Croatia
Hrčak ID:
3752
URI
Publication date:
1.6.2006.
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