Case Of Croatia Research Articles

Estimation of the firm‘s balance sheet channel effects during the economic crisis: Case of Croatia

Abstract Economic theory recognizes the importance of the firm’s balance sheet channel. This stands in stark contrast to the neoclassical theory of investment. This paper analyses the response of firms to the economic crisis in the sample of Croatian firms. Our main variables of interest are investment and employment. We estimated the OLS model that accounts for a heterogeneous response to the crisis shock of differently leveraged firms. The empirical model is augmented so that it accounts for industry and county effects. The robustness checks are performed for different dependent as well as control variables and interactions. The results strongly and robustly confirm the importance of the firm’s balance sheet channel.

Graduate Employability: A Gap between Perspectives - the Case of Croatia

Awareness of the importance of higher education (HE) in the transition to a knowledge-based society is growing in Croatia and universities are increasingly required to produce employable graduates who have attributes, capabilities, knowledge and skills to work successfully, and are able to respond to the changing and complex needs of the labor market. This paper seeks to investigate and compare the importance of skills and attributes which enhance graduate employability, as well as their reception through higher education, from the perspective of employers, university teachers and senior students. The research has shown that students, university teachers and employers have a significantly different view regarding knowledge, skills and attributes important for employment, and the contribution of university teaching to the development of these skills, knowledge and attributes. In April 2015 a total of 340 surveys were collected (230 from senior students, 30 teachers at the Faculty of Economics in Osijek, and 80 employers from the region filled in the questionnaire). In analyzing data descriptive statistics and hypotheses testing are given. Mann-Whitney test is used to test the difference between two distributions, and Kruskal-Wallis ANOVA between three distributions.

Cross-sectoral coordination for sustainable solutions in Croatia: The (meta) governance of energy efficiency

Increasing the energy efficiency not only requires the improvement of current technologies, but also advancement of and more coherent institutional governance. This paper captures the major structural and organisational elements of institutional governance in place for promoting energy efficiency. Looking at Croatia – one of the most successful cases of energy efficiency programming of the past decade – the paper zooms in on governance coordination (metagovernance) between actors from different sectors and operating at multiple levels. By showcasing the positive implications of the programme, the authors contribute to the debate concerned with identifying better institutional frameworks to attain sustainable development. The programme showed effective governance through vertical and horizontal coordination among institutions and stakeholders resulting in simultaneous social and economic development and improved energy efficiency in public buildings. Through the case of Croatia, this study identifies how metagovernance has supported coordination among actors aiming to create sustainable development in general and how metagovernance functions in energy efficiency related projects, in particular. The paper also sheds light on communication frameworks of governance coordination and institutional constraints lying at the heart of the vagueness of sustainable development. It also discusses private sector involvement to achieve better institutional framework to attain sustainable development.

Long Term Effects of Property Tax: Case of Croatia

Property tax in probably one of the most controversial taxes which were ever announced in Croatia's recent history. There was not a single tax or government measure which has occupied so much media and public discourse with the exception of the introduction of VAT. Most of the discussion regarding the new tax was focused on the actual fiscal impact of the new tax, how it will be calculated and what will be the overall fiscal impact. This paper however takes another approach and tries to determine the overall long term effects of the new tax in terms of the class separation and sociological impact this tax will have. Particular focus is paid on possible ghettoization of Croatia cities. The paper creates a model which investigates how the new tax affects the households long term consumption plans. If the households cannot adjust its consumption due to the new taxation it is forced to sell its property and move into lower value neighborhood. Over time this process leads to a large reclassification and regrouping of the households depending on their income. The paper also investigates how the introduction of the new tax will affect the educational system. Our model shows the new tax will have an adverse effect on the educational system and quality of education in Croatia.

The Influence of Socioeconomic Trends and Experiences on Individual Perception of Corruption: The Case of Croatia

Can socioeconomic factors, experiences, or attitudes influence an individual’s perception of corruption in Croatia? The aim of the present study is to examine the various micro-level factors that determine corruption perceptions. Using original survey data collected between October 2012 and June 2013, this study found that selected socioeconomic factors and experiences had a significant influence on individual-level perceptions of corruption regarding the courts, police, political systems, politicians, and political parties. This exploratory research should be followed by more precise studies in order to examine whether these results can be generalized to other cases.

Economic feasibility of CHP facilities fueled by biomass from unused agriculture land: Case of Croatia

In this paper, the energy potential of biomass from growing short rotation coppice on unused agricultural land in the Republic of Croatia is used to investigate the feasibility of Combined Heat and Power (CHP) facilities fueled by such biomass. Large areas of agricultural land that remain unused for food crops, represent significant potential for growing biomass that could be used for energy. This biomass could be used to supply power plants of up to 15MWe in accordance with heat demands of the chosen locations. The methodology for regional energy potential assessment was elaborated in previous work and is now used to investigate the conditions in which such energy facilities could be feasible. The overall potential of biomass from short rotation coppice cultivated on unused agricultural land in the scenarios with 30% of the area is up to 10PJ/year. The added value of fruit trees pruning biomass represents an incentive for the development of fruit production on such agricultural land. Sensitivity analysis was conducted for several parameters: cost of biomass, investment costs in CHP systems and combined change in biomass and technology cost.

What Can We Learn About Regulatory Agencies and Regulated Parties from the Empirical Study of Judicial Review of Regulatory Agencies’ Decisions? The Case of Croatia

Abstract The purpose of this paper is to examine regulatory agencies and regulated parties in an empirical study of administrative disputes initiated against the decisions of regulatory agencies in Croatia. We first aim to provide an overview of the status and trend estimates regarding these disputes; second, to answer the question how well does the system work from the perspectives of both the plaintiffs and the regulatory agencies; third, to identify the problem areas and to compare these with problem areas identified by the authors studying the broader area of administrative judiciary in Croatia, and finally to compare efficiency level of regulatory agencies to other public authorities in confirming the legality of their decisions and actions. Data on all administrative disputes against 12 Croatian regulatory agencies’ decisions in the 17-year period between 1995 and 2011 are used to identify the main characteristics and trends relating to these disputes. Data for 2012 to 2013 was also examined to identify initial changes and emerging trends in the new administrative judiciary system resulting from fundamental legal reform as part of Croatia’s process of accession to the European Union in 2013. The results show these administrative disputes to be often costly and timely with modest outcome for the plaintiff and impressive success rate for the most of regulatory agencies.

Transparency and Educational Improvement – Friends or Foes? The Case of Croatia

This paper seeks to discuss the recent introduction of standardised assessment in Croatia in form of a school leaving examination, called the State Matura. It examines the relationship between the apparent priority of procedural justice and transparency over questions relating to educational quality in Croatian secondary education. The paper calls for more research on how issues of procedural justice affect educational quality in post-socialist settings.

Academic marginalism in Western Balkans: the case of Croatia

ABSTRACTThis qualitative study relies on document analysis and in-depth, open-ended interviews with university leaders and government officials in a post-socialist and a recent European Union entrant country, Croatia. The study seeks to provide a comprehensive overview of the Croatian academic sector, as well as to unpack the top academic officials’ perceptions of the state, importance, and role of research and higher education (HE) in the social and economic development of the nation. The main theoretical contribution of the study is a new use of the traditional marginalism concept in the theory of economics. This study argues that marginalism can be applied to the HE setting, where it can be particularly helpful in explaining issues related to HE systems in the countries that have transitioned from socialist regimes to market economy. The new theoretical framework is termed academic marginalism.

Application of text mining in tourism: Case of Croatia

•Text reviews increasingly important for travelers and managerial decision-making.•Numerical evaluation of facility rarely sufficient, textual reviews provide rich information.•Illustration how text mining methods can be used to summarize reviews.•Implications for travelers and management highlighted.

Comparing public attitudes on EU membership in candidate countries: the cases of Croatia, Macedonia and Turkey from 2004 to 2011

Past enlargements of the European Union (EU) have demonstrated that public attitudes on European integration can influence the course of accession processes. Beyond the literature on public EU support in member states and former candidates, the dynamics that shape public attitudes on EU membership within recent candidate countries have not been systematically examined. Analysing nine Eurobarometer (EB) surveys from 2004 to 2011, we argue that evaluations of EU membership in Croatia, Macedonia and Turkey are shaped by utilitarian considerations, belief in various political institutions as well as the fear of losing national identity. The economic crisis of 2008 has changed public opinion towards EU membership in all three countries, but Turkey appears to have been affected the most compared to Croatia and Macedonia.

Specific Barriers for Quadruple Helix Innovation Model Development – Case of Croatia

There has been a lot of theoretical discussion about triple helix and quadruple helix methodologies for innovation and knowledge transfer in the context of local development and even smart cities. The goal of this paper is to describe specific barriers related to ICT uptake, usage and development related to knowledge based capital and their role in Croatia, especially in the context of passing from triple helix (academia, business, government) to quadruple helix (academia, business, government, NGOs/citizens) model. Specific barriers exist in each country, and they may be divided into technological, organisational, human, societal and/or cultural barriers. The case of Croatia is specifically analysed and compared to other countries in the region and in the EU. The lack of participative culture and other criteria influencing social dynamics are particularly addressed in order to reach a conclusion about country specific barriers and provide policy advice for decision makers.

Financial Stability Indicators – The Case of Croatia1

Abstract This paper considers financial stability through the processes of accumulation and materialisation of systemic risks. To this end, the method of principal component analysis on the example of Croatia has been used to construct two composite indicators – a systemic risk accumulation index and an index reflecting the consequences of systemic risk materialisation. In the construction of the indices, the features and risks specific to small open economies were considered. Such an approach to systemic risk analysis facilitates the monitoring and understanding of the degree of financial stability and communication of macroprudential policy makers with the public.

Modelling the impact of macroeconomic variables on aggregate corporate insolvency: case of Croatia

The majority of research papers dealing with corporate failure and insolvency in transition countries use a combination of financial ratios in investigating corporate failures, i.e., the microeconomic approach. By relying solely on the microeconomic approach, it is not possible to completely capture the complexity of business operations. In recent years, there has been a growing interest in exploring the predictive power of macroeconomic variables in forecasting insolvencies. As the macroeconomic approach has been applied mainly in the analysis of developed economies, this article investigates the influence of macroeconomic variables on aggregate corporate insolvency in Croatia, using the vector error-correction model (VECM) for the period 2000–2011. The results have shown a long-run dynamic connection between the corporate insolvency rate and the rate of unemployment while corporate credits, long-term interest rates and industrial production have a short-term effect on the corporate insolvency rate.

Alternative measures of internal distance in estimating home bias in trade: the case of Croatia

The existence of home bias in trade is considered as one of six main puzzles in international economics. The measurement of the average intra-national distance has become the crucial issue in estimating the home bias in goods trade for countries with no internal trade data. The aim of this article is to demonstrate how different internal distance measurement affects home bias in trade. The results of the analysis indicate that sub-unit based weighted measures perform better in the assessment of Croatia’s internal distance than area based and measures based on relation to neighbour countries. In estimating the model, we use data on import values for Croatia according to standard gravity theory. Regression analysis corroborates theoretical assumptions regarding the impact of geographical distance of countries and transport costs on bilateral trade flows; imports from world are positively correlated with the GDP of imported countries and negatively correlated with the distance between them. The values of home bias variable for Croatia’s total imports were slightly higher than results obtained from previous explorations for EU countries meaning that there is still place for Croatia’s deeper integration into EU trade flows.

Tackling undeclared entrepreneurship in a transition setting: the case of Croatia

This article argues that informal entrepreneurship in Croatia is part of a wider problem of undeclared work arising from incongruence between formal and informal institutions. It is therefore argued that settings similar to the one Croatia finds itself in should focus on indirect approaches that seek to improve the tax morale of enterprise owners, as well as its citizens more generally. Specific recommendations emphasising the improvement of formal institutions (such as improving administrative capabilities and increasing transparency) as well as awareness raising and knowledge improvement of citizens are outlined as based on the identified problems.

Old-Age Provision in Transition: The Case of Croatia

The Croatian system of old-age provision comprises a traditional public pay-as-you-go scheme and a mandatory funded scheme (“second pillar”) that will provide increasing amounts of supplementary pensions to those entering retirement in the future. Due to the continuing economic crisis, the public scheme is currently under enormous financial strain, with a sizeable impact on central government public finances. At the same time, the level of benefits deriving from the overall system is likely to become inadequately low in the long run. In this paper, we describe the existing system and project its future development under current rules. Building on lessons from recent pension theory, we also discuss options for further reforming the system, highlighting their potential impact on pension finances, public budgets, and retirement incomes.

Prosecuting War Crimes and Meeting Obligations under the Convention for the Protection of Human Rights and Fundamental Freedoms at the Same Time – the Case of Croatia

Abstract This article aims to give an overview of how human rights violations that occurred during the Homeland War in Croatia are redressed by conducting criminal prosecution in the Republic of Croatia. Namely, criminal prosecution as one of the elements of transitional justice is essential not only for establishing the accountability of war crime perpetrators, but also as a warning that such violations shall not be tolerated in the future. Moreover, drawing on the jurisprudence of the European Court of Human Rights, this article examines how the efforts made by national prosecution bodies to investigate war crimes are assessed by this court. It concludes with the idea that both prosecution of war crimes and protection of human rights, as guaranteed by The Convention for the Protection of Human Rights and Fundamental Freedoms and the European Court of Human Rights, seek to achieve the same goal, i.e. protecting the most basic human rights of the war crimes victims and other individuals.

The Role of Fisheries in Coastal Zone Management- Case of Croatia

Tema rada je suvremeno stanje hrvatskoga ribarstva i njegova uloga u upravljanju hrvatskim obalnim područjem. U prvom dijelu rada dan je kratak pregled stanja međunarodnog ribarstva. Drugi dio rada bavi se stanjem u hrvatskom ribarstvu, pripadajućim zakonskim odredbama te promjenama koje su uslijedile ulaskom Hrvatske u Europsku uniju. Članstvo u Europskoj uniji otvara nove mogućnosti razvoja i prilike za plasman na veliko europsko tržište, ali dovodi u pitanje opstanak tradicionalnog bavljenja tom djelatnošću. Promjene su nužne i neminovne, no postavlja se pitanje koje mjere prihvatiti, a koje prilagoditi potrebama lokalnoga stanovništva. Primjer malog obalnog ribolova dobar je primjer na kojemu se isprepliću suprotstavljeni interesi. Integrirano upravljanje obalnim područjem koje promovira Europska unija ističe nužnost suradnje na svim razinama i usklađivanje ekoloških, ekonomskih i socijalnih potreba. Ono predstavlja ključan element oživljavanja ekonomske djelatnosti na hrvatskoj obali. Hrvatska već nekoliko godina slijedi europsku i mediteransku ribolovnu politiku koja je samo djelomično zaživjela. Uz pravilno usmjeravanje i financijsku potporu novi smjer ribarstvene djelatnosti može pridonijeti oživljavanju obalnih područja. Na primjeru Hrvatske rad proučava problematiku uvođenja promjena i mogućnosti njihove primjene.

Coordination for Policy in Transition Countries: Case of Croatia

The formulation and implementation of public policy depends on the coordination capacities. In recent decades the need for coordination has increased due to the fragmentation caused by NPM reforms, decentralisation processes, the proliferation of the cross-cutting issues, as well as increased globalisation, Europeanisation, and professionalization. The coordination problem in Croatian administration, similarly to other transition countries, is critically important but understudied. This paper is based on a preliminary research on coordination in Croatian public administration with regard to policy formulation and implementation of three policies – regional development policy, anticorruption policy and e-government policy, based on the interviews conducted with higher civil servants and public officials. A special emphasis is given to the role which various actors play in coordination, as well as the structures Government employs in order to coordinate. The research shows that the development of coordination instruments in Croatia suffers from inefficiencies and is greatly influenced by politically driven considerations.