Tourism in global value chains- the case of Central and East European countries

The paper investigates the involvement of tourism in global value chains in the EU's new member states by analysing the proportion of domestic and foreign added value in tourism exports, as well as their shares in domestic and foreign demand. According to the OECD TiVA database, by applying secondary data analysis, the results show that Croatia has achieved the highest share of inward FDI stock in tourism out of total FDI stock, which aligns with tourism's significant contribution to Croatia's GDP; the domestic added value dominates in domestic export with the share of foreign added value reaching a maximum of 25%. The econometric analysis confirms positive impact of FDI inward stock and number of employed in accommodation and food services on the domestic value added. The Granger causality test is employed to find out the interrelation between supply and demand variables on domestic value added in the sector of accommodation and food services. Positive impact is found for different groups of employed persons, expenditures in accommodation and food services, and the number of beds in all accommodation units. The results indicate the importance of tourism, as well as domestic production capabilities and capacities.