SHIPBUILDING INDUSTRY IN THE EU AND CROATIA – REALITY AND CHALLENGES

Ines Kersan-Škabić

Economic Thought and Practice, 2009, vol. 18, issue 2, 373-396

Abstract: The negotiations of Croatia with the EU concerning the Chapter on Market Competition demand for the ability of all business subjects (including shipbuilding subjects as well) to perform their activities without receiving state sector subventions. The paper researches the main features of the shipbuilding industry within the EU, with a special emphasis on the size and structure of the state subventions. The case of Polish shipbuilding is analyzed, an industry faced with the return of the oversized state subventions and unsuccessful privatization of two major shipbuilding yards. It is concluded that the situation in the Croatian shipbuilding industry is unsustainable in the aspect of the production orientation, organizational activity and the amount of the state subvention it receives. The moment for privatization is bad considering the global recession circumstances. The survival of the shipbuilding activities in all shipbuilding yards is also questionable and dependable on the interests and business strategies of the future majority owners of the shipbuilding yards. Joining the EU might give a chance to the Croatian shipbuilding yards to re-orientate, through the integration, and start producing more sophisticated ships, and thus generate the technological development and innovativeness as a precondition for the growth of competitiveness, which will grant the state subvention.

Keywords: shipbuilding; state subventions; privatization (search for similar items in EconPapers)
JEL-codes: L92 (search for similar items in EconPapers)
Date: 2009
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