engleski

Effective Customs Protection (Croatian Case)

The relationship between economic trends and customs tariff is multidimensional and usually intricate, and the construction of the group index comprising the influence of customs on economic trends is a problem of economic theory as well as economic analysis. Finally, it is also an issue for statistics to deal with. The index of effective customs protection is defined by the perceptual change in the added value per production unit induced by the given tariff structure. This paper tries to rehabilitate the indicator of effective customs protection in the Republic of Croatia, the indicator which could help in the protection of domestic production by protecting the newly made value. The theoretical frame for an empirical analysis has been made according to the model of partial equilibrium of effective protection. Although this model has been almost abandoned due to the innovative advances towards the model of the general equilibrium of effective protection, and the effective protection versus the change of incomes on specific factors in the given industry, the formal findings for calculating the indicator of effective customs protection as a complex index rely on the model of partial balance. The analysis of this problem is accompanied by the comparison of the given effective customs protection and the relative foreign trade balance of particular business activities in Croatia. As for its application, the paper concentrates on questioning the structure of effective customs protection in the Republic of Croatia as a cause of decreasing added value due to the generated increasing “import-dependable” trends in the recent domestic production.

customs tariff; effective rate; protection; import; intermediate goods

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