EXPORT OF CROATIAN FOOD INDUSTRY AND EFFECTS ON ECONOMY: THE CASE OF CROATIA

The purpose of this paper is to get new knowledge about the state and position of the export of Croatian food industry and its effects on Croatian economy. Methodology of the paper is based on applying input-output model and standardized indicators of export competitiveness. Although, the food industry showed a high resistance to the recession from 2008, the newest trends in 2013 confirm the strong competitive pressure and the need of strengthening of export competitiveness. An insufficient diversification of product and market structures reveals the unutilized potentials of the development and the necessity of higher investing in innovation and development of new products. Among analyzed segmented markets, Croatian food industry has the best position on CEFTA market. Here is the largest number of the products with comparative advantages, the highest level of export diversification and the relative and absolute trade surplus. The results of input-output analysis show that the export of food industry has the highest multiplicative effects on agricultural production and trade, and something lower on land transport, electricity supply, and administrative services. The obtained values of the multiplier for food industry confirm the strategic importance of this sector for domestic industry and economy as a whole.