Examining Slovenian trade flow sustainability: empirical evidence from the period of the EU membership

Sa？etak The main aim of this research is to examine Slovenian trade flows in goods and services with the rest of the world since joining the European Union (EU) in May 2004. We applied Granger causality test and Vector Error Correction Model (VECM) on quarterly data from the first quarter of 2005 up to the first quarter of 2017. Applied Hansen and Seo (2002) test confirmed the assumption of linearity in the relationship between the variables under consideration and therefore the appropriateness of the empirical approach for the purpose of this paper. The research results indicate importing to exporting as a dominant trade pattern in the Slovenian economy and successful trade balance with the rest of the world since Slovenia joined the EU