TESTING THE FISHER EFFECT IN CROATIA: AN EMPIRICAL INVESTIGATION

In his celebrated book The Theory of Interest Irving Fisher asserted that a percentage increase in the expected rate of inflation would lead to a percentage increase in the nominal interest rates assuming that real interest rate is constant. The so-called Fisher effect suggests that changes in the nominal interest rate reflect the revised inflation expectations; and revised inflation expectations have an impact on the level of the nominal interest rate. Consequently, the monetary authorities should employ strategies that will prevent inflation from rising if nominal interest rates are to be kept at low levels in order to not discourage the borrowing. The aim of this paper is to empirically test the Fisher effect in Croatia using VEC (vector error correction) model. The results suggest that the “full” Fisher effect in Croatia may de facto hold only in the long-run. This paper is organized as follows. Section 2 after the introduction, reviews the literature. Section 3 reviews used data while Section 4 describes methodology, empirical analysis and the results. Finally, Section 5 provides some concluding remarks

Measuring efficiency in the Croatian customs service: a data envelopment analysis approach

The concept of efficiency in the public services is more complex than the concept of efficiency in the private, profit-oriented sector. Consequently, the measurement of efficiency in the public services is very complex and implies more effort in the identification of relevant outputs and inputs. One of the segments of the public service system in the Republic of Croatia is the Customs Administration, which is an important regulator of Croatian international trade and freight traffic, and also a significant tax authority. This research is focused on determining the relative efficiency of regional organizational units of the Customs Administration on the basis of its most relevant inputs and outputs. Conclusions were made by the processing of data obtained directly from the Customs Administration by using the method of data envelopment analysis. The results obtained, in the end, indicate the need to establish new and different territorial organizational structure for the Customs Administration

Determinants of retail trade in Croatia

It is well known that retail trade is one of the most important parts of any economy. Retail trade is also a very important component of GDP, whereby rising retail trade means a growth in consumption and a fall in unemployment. Therefore, policy makers must be able to recognise how changes in economic variables affect changes in retail trade. The main goal of this paper is to analyse the effects of changes in retail prices, net wages and short-term interest rate on nominal retail trade in Croatia using the bounds testing (ARDL) approach for cointegration. The results indicate the existence of a stable cointegration relationship between the variables. In the long-run, an increase in retail prices and short-term interest rate leads to a reduction in nominal retail trade while an increase in net wages boosts an increase in nominal retail trade. In the short-run, a positive change in retail prices has a positive effect on the change in nominal retail trade while positive changes in net wages and short-term interest rate have negative effects on nominal retail trade

From social interactivity to buying: an instagram user behaviour based on the S-O-R paradigm

Social networks are one of the largest and fastest-growing marketing tools in the world. Their strength is proven by 3.8 billion users worldwide in 2020. The tool offers great economic potential for a commercial brand. This paper focuses on the social network sought after by the millennials - Instagram. One advertisement on Instagram can reach up to 849 million users. One-third of socalled stories are commercial and 200 million users a day look at a business profile. The aim of this paper is to characterize the influence of interactivity in the form of ‘liking’, commenting, and sharing on consumer shopping behavior. The partial goal of the paper is to characterize the interests of users on the social network Instagram. The paper is based on the stimulus-organismresponse paradigm developed by Howard and Sheth (1969). The research concerns the influence of interactivity on the motives for using Instagram (O) and especially on brand awareness and the intention to purchase (R). Interactivity only influences responses when it is mediated through the individual’s motivation to use the application, whether for hedonistic or utilitarian reasons. The data were obtained using a questionnaire and were evaluated using the Confirmatory Factor Analysis and Equation Structural Modelling

Monetary policy and unemployment in Croatia

Achieving full employment is one of the most important economic policy tasks. Economic policy affects employment primarily through monetary and fiscal policies, which with their instruments affect aggregate supply and demand for goods and services. The aim of this article is to determine the impact of monetary policy on unemployment in Croatia. For this purpose, the bounds testing (ARDL) approach for cointegration is applied. The results indicate the existence of stable cointegration relationship between the variables and show that Croatian monetary policy is quite limited in reducing unemployment

Koncept i mjerenje kvalitete usluge na tržištu poslovnog savjetovanja

Service quality is a key factor of the competitive capability of business consulting services providers – it helps strengthen the image, create references, establish long-term business relationships and reduce the perceived risk to the customer of such services. The existing service quality models are not suitable for application to the business-to-business (B2B) market due to differences in service characteristics and specific behavior of B2B customers. Business consulting services are highly intangible and complex to evaluate, with a large number of people involved generally both in their provision and use. Typically, they are implemented in the form of a project, characterized by a high degree of interaction between service providers and customers, who differ by their ability to be integrated in their service provision process. It is essential to adapt these services to specific customer needs, and the outcome of service provision may sometimes only be apparent a while after the consulting project has been completed. Therefore, there is no single, generally accepted model of conceptualizing and measuring the quality of B2B services such as business consulting services. Building from existing theoretical notions, the paper determines the suitability of Donabedian\u27s service quality model for conceptualizing and measuring the perceived quality of business consulting services. Based on the results of the empirical research conducted on a sample of 110 managers of the companies which use them, the perceived quality of business consulting services was found to be a multidimensional construct of a higher order which is perceived by customers through such dimensions as service potential, process and results. Thus, the preliminary hypothesis of the paper was confirmed. Research results provide the basis for recommendations to be presented for use by the marketing management of consulting services providers as well as serving as suggestions for future research.Kvaliteta usluge ključni je čimbenik konkurencijske sposobnosti pružatelja usluga poslovnog savjetovanja. Naime, njome se jača imidž, stvaraju reference, uspostavljaju dugoročni poslovni odnosi i smanjuje percipirani rizik za korisnika. Postojeći modeli kvalitete usluge nisu prikladni za primjenu na tržištu poslovne potrošnje zbog razlika u obilježjima poslovnih usluga i specifičnosti u ponašanju poslovnih korisnika. Usluge poslovnog savjetovanja izrazito su neopipljive, kompleksne za prosudbu, a u njihovu pružanju i korištenju uglavnom sudjeluje veći broj osoba. Realiziraju se u obliku projekta s visokim stupnjem interakcije između pružatelja i korisnika koji se razlikuju po svojoj sposobnosti za integraciju u proces pružanja usluge. Neophodno je prilagoditi ih specifičnim potrebama korisnika, a rezultati pružene/ih usluge/a mogu nastupiti nakon duljeg vremena od završetka projekta savjetovanja. Zbog toga jedinstveni, općeprihvaćeni model koncipiranja i mjerenja kvalitete za poslovne usluge, poput usluga poslovnog savjetovanja, ne postoji. Polazeći od postojećih teorijskih spoznaja, u radu se utvrđuje prikladnost Donabedianova modela kvalitete usluge za koncipiranje i mjerenje percipirane kvalitete usluge poslovnog savjetovanja. Na temelju rezultata empirijskog istraživanja provedenog na uzorku od 110 menadžera poduzeća korisnika, utvrđeno je da je percipirana kvaliteta usluge poslovnog savjetovanja višedimenzionalan konstrukt višeg reda, a korisnici ju percipiraju putem dimenzija potencijala, procesa i rezultata usluge. Time je potvrđena polazna hipoteza rada. Rezultati istraživanja osnova su za iznesene preporuke za marketinški menadžment pružatelja usluga poslovnog savjetovanja kao i za prijedloge za buduća istraživanja

Ocjena fiskalne i monetarne politike u Republici Hrvatskoj tijekom poslovnog ciklusa

The aim of this paper is to evaluate the controversies of fiscal and monetary policies in defining business cycles in Croatia, i.e. to answer the question whether they can, and in what way, determine the cyclical movements. Using Hodrick-Prescott filter for extracting cycles from selected macroeconomic variables for the period 1994-2013, this paper gives a reflection on the past relationship between the characteristics of Croatian fiscal and monetary policies by testing whether these two economic pillars are in fact coordinated over a business cycle. We found that both fiscal and monetary variables exhibit counter-cyclical behaviour with relatively weak correlation to the real GDP suggesting that they are coordinated during a business cycle but their reach is ambiguous. Finally, we conclude that fiscal and monetary policies in Croatia are constrained by internal and external factors, and thus they often cannot accomplish their counter-cyclical role.U radu se teži vrednovanju učinaka fiskalne i monetarne politike u Hrvatskoj tijekom poslovnog ciklusa. Korištenjem Hodrick-Prescott filtra za izdvajanje cikličkog kretanja iz makroekonomskih varijabli za razdoblje 1994.–2013., ovaj rad povijesno povezuje odnose fiskalne/monetarne politike u Hrvatskoj testiranjem hipoteze jesu li ova dva ekonomska stupa zapravo koordinirana tijekom poslovnog ciklusa. Utvrdili smo kako i fiskalne i monetarne varijable pokazuju protu-cikličko kretanje i relativno slabu povezanost s realnim BDP-om, što nam sugerira da su dvije ekonomske politike zaista koordinirane, međutim njihov doseg je ograničen. U konačnici, zaključak je da su fiskalna i monetarna politika u Hrvatskoj ograničene internim i eksternim faktorima i stoga često ne mogu ispunjavati svoju protu-cikličku ulogu

Dimensions of attractiveness in employer branding and the value proposition framework for young employees

Purpose: The aim of this paper is to expand the body of knowledge on employer branding by identifying the dimensions of employer attractiveness for Generation Z and to develop a framework for employee value creation in the specific context of Croatian culture. Methodology: The research was conducted on a sample of 220 key informants using the scale developed by Berthon et al. (2005). Since the purpose of the paper was to identify the various dimensions of employer attractiveness as well as the key factors of attractiveness as the basis for value proposition underlying respondents’ perception of employer attractiveness, exploratory factor analysis was applied to analyze the data, i.e. a total of 25 identified employer attractiveness variables. After performing factor analysis, the average rates of importance were measured using summated rating scales for variables of individual factors. Results: The study identified six organizational attractiveness dimensions relevant to Generation Z. In addition, a value proposition framework was developed. The attractiveness dimensions encompass Organization’s market orientation, Acceptance and good relationships with colleagues, Informal characteristics of the workplace, Potential of the workplace for gaining experience and career advancement, Salary and other material benefits, and Sense of belonging to the organization. The dimensions have changed compared to the original Berthon et al. (2005) scale. These differences can be attributed to the specific needs of young employees and to a specific culture and general current conditions. Conclusion: In the “war for talent”, especially for young employees who enter the labor market for the first time, marketing concepts can be a powerful weapon. In order to attract them, their needs and wants should be deeply understood. Based on the proposed value proposition framework and the identified organizational dimensions, a valuable employer brand can be developed and the possibilities to attract and engage employees can be increased