CONCEQUENCES OF THE WAR: IMPACT ON CROATIAN POPULATION

One would think that war and full employment walk hand in hand. So was the conviction of many scholars, based on the evidence of numerous countries engaged in more than few wars, especially in Europe. Sometimes it even started to look like a \u27\u27good " war and war industry was a way out of persistent high employment for some countries. But not for Croatia. Despite the cruel and lasting war and long tenn low population birth rate, unemployment has steadily increased. In 1996, there are less than lmill people employed in Croatia against 1,6 mill employed in 1990, which means the drop of 40% in total working force

The Harrod-Balassa-Samuelson Effect: A Survey of Empirical Evidence

The paper surveys empirical evidence on the Harrod-Balassa-Samuelson effect. The survey encompasses the published empirical work on the phenomenon since its (re)discovery in 1964. In total, 58 empirical papers are examined within a specialized analytical framework. The body of empirical evidence is synthesized through four major elements. The analysis starts with the ongoing controversy related to the name of the theory. This is followed by a presentation of the evolution of the theoretical and econometric model. It ends with an analysis of the results of the surveyed empirical studies. Results of the survey indicate that growing body of evidence definitely points towards professional rethinking about the significance of the Harrod-Balassa-Samuelson effect.Harrod Balassa Samuelson effect, real exchange rate, purchasing power parity, productivity

Tourism, welfare and real estate market in small open economy: the case of Croatia

The paper investigates effects of the tourism boom on the real estate market in Croatia. According to the general equilibrium models of the tourism intensive small open economy, the most important benefit of the tourism is reflected in the fixed-factors rents, namely real estate market rents. This paper investigates results of the small open tourism intensive economy theoretical model in the case of the transition and EU accession of the Croatian economy. Analysis is focused on the real exchange rate changes in the tourism sector as the main source of welfare improvements and its effects on the fixed-factor prices in Croatia.tourism, real estate, development, EU enlargement, Croatia

MAKROEKONOMIJA TRŽIŠNE TRANSFORMACIJE STAMBENE INDUSTRIJE

Hrvatska kao nova neovisna zemlja prolazi kroz složeni proces tranzicije prema tržišnom okruženju. Taj proces naročito obuhvaća stambenu izgradnju, jer je taj sektor bio posebno izložen ratu i agresiji, a to je rezultiralo u ciljanju glavnine potencijala prema rekonstrukciji razorenog i uništenog stambenog vlasništva. Bitna suvremena rekonstrukcija mora također uključiti sve oblike tržišne, društvene, politike okoliša i ekonomske politike, kao funkciju nove kvalitete života koji bi pogodovao uspostavljanju skladnog regionalnog i održivog razvitka. No, od najveće je važnosti primijetiti da je djelotvoran proces privatizacije i uspostavljanje čvrstog i nadmoćnog privatnog sektora nezaobilazan preduvjet za sveukupan ekonomski razvitak, a i za učinkovitost stambene industrije. Zato je povećana uloga privatnog sektora u jakoj uzajamnoj vezi s uspješnom transformacijom tržišta i vremenom potrebnim da se “dostigne” putanja rasta

SIMETRIJA NAPREDOVANJA I NAZADOVANJA HRVATSKE EKONOMIJE

Generally speaking the 20th century displayed turbulent growth performance in Croatia. Contemporary developed countries have ended the century with many a time multiplied national output. The rest of the world encompassing dominant portion of world’s population and prevailing number of countries is still fi ghting uphill way through curving path of economic development, often exposed to many side-tracks and blind alleys. Growth periods when attained are immediately followed by periods of stagnation and/or overall regress, with unsatisfactorily growth performance in the long run. Result is widening of the development gap between vast majority of world population and minority of “lucky” ones living in developed economies. In that context Croatian experience is not only intriguing but also analytically very distinctive.Uopćeno govoreći hrvatski gospodarski razvitak tijekom 20. stoljeća može se ocijeniti turbulentnim, osobito u poredbi s razvijenim ekonomijama. Suvremene visoko razvijene zemlje postigle su višestruko uvećanje nacionalnog proizvoda tijekom proteklog stoljeća. Njima nasuprot, ostatak svijeta kojeg nastanjuje dominantna većina ukupnog svjetskog pučanstva i kojemu pripada pretežiti dio zemalja, još uvijek vodi neizvjesnu bitku na krivudavoj uzbrdici ekonomskog razvoja obilježenog brojnim stranputicama i slijepim ulicama. Kada se u nekoj od ovih zemalja i otvori razdoblje rasta, njega vrlo brzo naslijedi stagnacija i/ili svekoliki regres s dugoročno nepovoljnim razvojnim performansama. Izravna je posljedica takvih gibanja tijekom proteklog stoljeća, širenje razvojnog jaza između ogromne većine svjetskog pučanstva i manjine “sretnika” koji žive u razvijenim gospodarstvima. U tom je kontekstu hrvatsko ekonomsko iskustvo ne samo intrigantno nego i analitički vrlo upečatljivo

SIMETRIJA NAPREDOVANJA I NAZADOVANJA HRVATSKE EKONOMIJE

Generally speaking the 20th century displayed turbulent growth performance in Croatia. Contemporary developed countries have ended the century with many a time multiplied national output. The rest of the world encompassing dominant portion of world’s population and prevailing number of countries is still fi ghting uphill way through curving path of economic development, often exposed to many side-tracks and blind alleys. Growth periods when attained are immediately followed by periods of stagnation and/or overall regress, with unsatisfactorily growth performance in the long run. Result is widening of the development gap between vast majority of world population and minority of “lucky” ones living in developed economies. In that context Croatian experience is not only intriguing but also analytically very distinctive.Uopćeno govoreći hrvatski gospodarski razvitak tijekom 20. stoljeća može se ocijeniti turbulentnim, osobito u poredbi s razvijenim ekonomijama. Suvremene visoko razvijene zemlje postigle su višestruko uvećanje nacionalnog proizvoda tijekom proteklog stoljeća. Njima nasuprot, ostatak svijeta kojeg nastanjuje dominantna većina ukupnog svjetskog pučanstva i kojemu pripada pretežiti dio zemalja, još uvijek vodi neizvjesnu bitku na krivudavoj uzbrdici ekonomskog razvoja obilježenog brojnim stranputicama i slijepim ulicama. Kada se u nekoj od ovih zemalja i otvori razdoblje rasta, njega vrlo brzo naslijedi stagnacija i/ili svekoliki regres s dugoročno nepovoljnim razvojnim performansama. Izravna je posljedica takvih gibanja tijekom proteklog stoljeća, širenje razvojnog jaza između ogromne većine svjetskog pučanstva i manjine “sretnika” koji žive u razvijenim gospodarstvima. U tom je kontekstu hrvatsko ekonomsko iskustvo ne samo intrigantno nego i analitički vrlo upečatljivo

Croatian industrial policy in the context of deindustrialisation

The lack of structural changes and rapid deindustrialisation are the main reasons behind Croatia’s failure in achieving its industrial potential. One of the aims of this article is to show that the process of deindustrialisation that occurred in Croatia is characterised by factors different that those in developed countries. This is shown using econometric analysis. In our opinion those differences should be taken into account when considering new industrial strategies after 2008. Furthermore we explore if, in light of this specificity, the proposed Croatian industrial strategy is a suitable answer to modern economic challenges. After a detailed analysis and review of the industrial strategy, we offer potential solutions

The Harrod-Balassa-Samuelson Effect: A Survey of Empirical Evidence

The paper surveys empirical evidence on the Harrod-Balassa-Samuelson effect. The survey encompasses the published empirical work on the phenomenon since its (re)discovery in 1964. In total, 58 empirical papers are examined within a specialized analytical framework. The body of empirical evidence is synthesized through four major elements. The analysis starts with the ongoing controversy related to the name of the theory. This is followed by a presentation of the evolution of the theoretical and econometric model. It ends with an analysis of the results of the surveyed empirical studies. Results of the survey indicate that growing body of evidence definitely points towards professional rethinking about the significance of the Harrod-Balassa-Samuelson effect

Croatian Economy Challenges in the Posttransitional Period

Current global economic trends create a new economic environment for Croatia. They could be described, by two processes amongst others. The first is clear enough abandonment of basic determinants of transitional economic policy defined as ‘Washington consensus’. Change of ‘tide’ could be observed in redesigned behavior of both transition architects, International Monetary Fund and World Bank. Even before recent global crisis IMF was revising its approach towards fixed exchange rate and WB has been displaying ‘change of heart’, placing development instead of stabilization on its core agenda sheet. The other process is global financial and expected overall economic crisis seemingly comparable to the Great Depression. It will have far reaching impact on the mainstream economic paradigm

The Challenge of Application of Phillips Curve: The Case of Croatia

In this paper hypothesis of relation between unemployment and the rate of change in prices is tested in Croatia with data spanning from 1962 to 2004. Empirical test is designed with a goal of testing the original Phillips curve developed by A. W. Phillips and adaptive expectation augmented Phillips curve designed by Edmund S. Phelps. Since both these versions of the relationship were designed for the US economy, authors suggest a new theory of accommodation through insolvency for the Croatian economy