Why Eastern Europe dominates Croatian exports?
Exports are a crucial contribution to the competitiveness of post-transition
countries. Accordingly, Croatia expresses a need for stronger integration into the world economy. The purpose of this paper is to investigate reasons for which Croatian exporters are most prevalent on the market of Eastern Europe. Deciding on internationalization depends on various factors which are measured by using CAGE (cultural, administrative, geographical and economic) distance framework which identifies cultural, administrative, geographical and economic differences. Two basic goals are set: (i) identify how managers of Croatian exporting companies perceive the degree of export obstacles between Eastern
Europe and Croatia in relation to other markets; (ii) empirically and statistically determine the effect of export obstacles in Eastern Europe on the export results of Croatian companies. Research comprises original datasets on attitudes of Croatian managers according to distances between Croatia and Eastern Europe using the CAGE distance framework. Research models, with the export activity of the firm as a dependent variable and the above-mentioned attitudes of managers as independent variables, are created using multiple linear regressions, and a stepwise approach to selecting variables. The results indicate that cultural and geographic differences have no impact on export performance.
On the other hand, some administrative differences adversely affect export performance, while economic differences have a positive effect on the share of exports. The fundamental restriction of this research is the cross-sectional approach. Additional insight can be achieved by conducting in-depth interviews which in turn could be the starting point for future research.
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).