Application of the constant market share method on the high value added services sector export of the Republic of Croatia to the European union market

Abstract

The subject of the analysis in this paper is relative change of high value added services sector export of the Republic of Croatia to the European Union market in the period from 2008 to 2012 by applying constant market share method that enables determination of changes of certain countries market share. The change of market share is decomposed into structural effect which indicates how much market share is affected by the export structure according to certain services (service orientation), i.e. export markets (geographical orientation) and the competitiveness effect which consists of all other factors that may have impact on competitiveness of services on certain market and consequentially their market share. The results of conducted research indicate that increase of Croatian high value added services sector export to the European Union market in the period 2008-2012 is primarily the consequence of competitiveness effect.