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Tourism, welfare and real estate market in small open economy: the case of Croatia

Ivo Družić ; Faculty of Economics and Business, University of Zagreb
Vladimir Čavrak orcid.org/0000-0001-8861-3802 ; Faculty of Economics and Business, University of Zagreb
Josip Tica orcid.org/0000-0001-7937-1573 ; Faculty of Economics and Business, University of Zagreb

Abstract

The paper investigates effects of the tourism boom on the real estate market in Croatia. According to the
general equilibrium models of the tourism intensive small open economy, the most important benefit of the
tourism is reflected in the fixed-factors rents, namely real estate market rents. This paper investigates results of
the small open tourism intensive economy theoretical model in the case of the transition and EU accession of
the Croatian economy. Analysis is focused on the real exchange rate changes in the tourism sector as the main
source of welfare improvements and its effects on the fixed-factor prices in Croatia.

Keywords

tourism; real estate; development; EU enlargement; Croatia

Hrčak ID:

137192

URI

https://hrcak.srce.hr/137192

Publication date:

28.5.2007.

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