REGIONAL DISPARITIES IN PRICE DYNAMICS IN THE FAST-FOOD SECTOR IN CROATIA

Abstract

Following the introduction of the euro on 1 January 2023 and a period of high inflation, Croatia has recorded notable price changes across sectors and regions. This paper analyzes regional differences in price growth in the Croatian fast-food sector, comparing tourist and non-tourist regions. The analysis relies on an original dataset of product prices collected at the micro level via the Google Reviews platform. Multiple regression models and a series of robustness checks, including robust regression, quantile regression, alternative data transformations, and a treatment-effects (IPWRA) estimator, were used to examine regional differences. The results do not provide robust evidence that price growth differed systematically between tourist and non-tourist regions. In contrast, products with lower initial prices experienced stronger subsequent price growth, and price growth differed across initial price segments. No evidence was found that the relationship between tourist-region status and price growth varied across initial price segments.