Professional paper

https://doi.org/10.15179/pkiep.27.1.3

The Effects of the Euro Adoption in Croatia on International Trade and Foreign Direct Investments

Maja Bukovšak orcid.org/0000-0002-6291-8277 ; Croatian National Bank
Andrijana Ćudina ; Croatian National Bank
Nina Pavić orcid.org/0000-0003-1733-5213 ; Croatian National Bank

Abstract

This paper presents the results of selected empirical research on the euro's effect on trade, foreign direct investment, and tourism by giving a brief analytical overview of the developments in individual euro area countries, particularly newer member states and tourist destinations. Based on that, and taking into account Croatia's close ties to the euro area, we estimate that the introduction of the euro, due to lower transaction costs, easier price comparison, and currency risk reduction, might provide a small boost to Croatian trade in goods and services, particularly in tourism, and encourage foreign investment.

Keywords

euro; trade in goods; tourism; foreign direct investment; Croatia

Hrčak ID:

208247

URI

https://hrcak.srce.hr/208247

Publication date:

14.11.2018.

Article data in other languages: croatian

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