Export Performance of the Croatian Wood Industry and Its Contribution to the Overall Croatian Economy
2015
LovrinÄević, Željko | Buturac, Goran | Mikulic, Davor
This article investigates the contribution of the Croatian wood industry to the overall Croatian economy. The contribution is analyzed in terms of production, employment, and value added, using the input–output method for analysis. The objective of this article is to calculate multipliers for the wood industry in Croatia and benchmark them to the economies of similar European new member states. The model uses the so-called open model calculation, from which households are excluded. It comprises direct and indirect effects only, without induced effects, which is one of the distinguishing features of the so-called closed model. Results are benchmarked to other national economy sectors and similar transition economies. The wood industry output multiplier is the highest in Croatia and Poland. Domestic producers use various domestic and imported inputs in the production process. Input–output multipliers are calculated for both domestic and foreign demand (exports). Exports are profoundly important for Croatia as a small, open economy. Results of this research are useful to a wide range of policymakers and academics.
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