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Zagreb International Review of Economics & Business, Vol. SCI No. 1, 2004.

Original scientific paper

Constructing an Export Supply Function for Croatia

Erjavec Nataša ; Graduate School of Economics and Business, Zagreb, Croatia.
Cota Boris ; Graduate School of Economics and Business, Zagreb, Croatia.

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Abstract

The main aim of this paper is an investigation of the interplay between Croatian export supply and the real exchange rate. i.e. The relative prices. We analyse here the price elasticity of export supply through modelling both the short-ami the long-run structures ofthe model. Additionally, the relationship between export supply and production capacity is also subjected to an analysis. As a result, this paper provides some insights into the importance played by the real exchange rate ami production capacity in explaining Croatian exports.

Keywords

export supply; unit root tests; coinlegration; VECM model

Hrčak ID:

101269

URI

https://hrcak.srce.hr/101269

Publication date:

1.12.2004.

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