Economic effects of transport sectors on Croatian economy: an input-output approach

Multiplier effects play a major role in determining importance of a sector of interest to the national economy. In order to determine the significance of Croatian transport sectors, in this paper input-output analysis was applied. A comparative analysis of type I and type II output, gross value added and employment multipliers based on input-output tables for Croatian economy for the year 2010 and 2015 was performed. Type I multipliers were calculated based on the open IO model. Closed IO model was used in type II multipliers determination. Results indicate that sector code H49-Land transport services and transport services via pipelines and sector code H50-Water transport services in the year 2015 recorded lower type I and type II output, gross value added and employment multipliers compared to the year 2010. For sector code H51-Air transport services, significant growth in terms of all three economic indicators was detected, especially when interest is focused on type I and type II employment multipliers. Results presented in this paper could be valuable for academia and general public because they reflect multipliers estimation of transport sectors in Republic of Croatia for the first time based on sound macroeconomic analysis tool.