Keywords: international trade, exports, gross domestic product, GDP growth, Croatia, import dependency, exporting propensity, degree of openness, value added
International trade of goods as a determinant of GDP growth in Croatia
The main purpose of this paper is to determine an impact of international trade, mainly the exports on the GDP growth in the Republic of Croatia in the period between 2001 and 2010. The paper analyses the influence of the exports of goods on the real GDP growth. The results show that the exports of goods have the lowest positive contribution to the GDP growth rate in the Republic of Croatia in comparison to other countries in the region. The paper explores the level of international trade of goods, imports dependency, exports propensity, degree of openness and involvement of the Republic of Croatia in the international trade of goods. The paper indicates that for the growth and development of the Croatian economy it is necessary not only to increase the exports but also to stress the importance on exports with a higher value added.