Lagging regions: The case of Eastern Croatia

Eastern Croatia lagging behind significantly. There are many indicators that substantiate such a condition as well as the expected trends (e.g. GDP per capita in counties that belong to Eastern Croatia, huge population drain in the region, development index calculated by the Ministry of regional development and many others). As the development level of counties in Eastern Croatia is far from comparable to the most developed ones (especially the City of Zagreb), it is necessary to identify areas for possible improvements in those lagging regions. In the context of the European Union, the development level of counties in Eastern Croatia is particularly low. Other EU members have also failed to achieve convergence towards total homogeneity, but this paper focuses on chosen examples of countries and their regional policies that aimed to decrease existing regional differences. Decentralization level is one of the important prerequisites to decrease existing regional differences and adequately apply regional policies. This paper will theoretically examine the research on experiences of selected EU lagging regions and note the importance of the relationship between regional and national economy. As all five counties in Eastern Croatia can be characterized as lagging counties, one of the goals of this paper is, in accordance with theoretical insights into European experiences, to compare the situation and trends in the lagging regions and counties in Eastern Croatia, going beyond economic considerations to include a much broader context

Lagging regions: The case of Eastern Croatia

Eastern Croatia lagging behind significantly. There are many indicators that substantiate such a condition as well as the expected trends (e.g. GDP per capita in counties that belong to Eastern Croatia, huge population drain in the region, development index calculated by the Ministry of regional development and many others). As the development level of counties in Eastern Croatia is far from comparable to the most developed ones (especially the City of Zagreb), it is necessary to identify areas for possible improvements in those lagging regions. In the context of the European Union, the development level of counties in Eastern Croatia is particularly low. Other EU members have also failed to achieve convergence towards total homogeneity, but this paper focuses on chosen examples of countries and their regional policies that aimed to decrease existing regional differences. Decentralization level is one of the important prerequisites to decrease existing regional differences and adequately apply regional policies. This paper will theoretically examine the research on experiences of selected EU lagging regions and note the importance of the relationship between regional and national economy. As all five counties in Eastern Croatia can be characterized as lagging counties, one of the goals of this paper is, in accordance with theoretical insights into European experiences, to compare the situation and trends in the lagging regions and counties in Eastern Croatia, going beyond economic considerations to include a much broader context

Regional development and glocalisation: Theoretical framework

The importance of regions and regional development in modern economies is unquestionable. In this context, the paper aims at elaborating the term of regional development from various angles and in relation to frequently used terms in this respect. It focuses on discussing the necessity to grant smaller units the power and respect the principle of subsidiarity as well as to accept the model of functional regionalisation. By respecting the principle of subsidiarity, local and regional self-government units are allowed operational space for starting regional development, which can be viewed as globalisation adjusted to the conditions at the local level. Additionally, the paper gives a few positive innovative examples of initiating development and discusses several suggestions for underdeveloped regions in the Republic of Croatia. For instance, the geographical distance of Eastern Croatian counties from the City of Zagreb is much smaller than the actual geographical distance of some other counties (e.g. Dubrovnik-Neretva County), but in the context of the development level, “distance” is much bigger. The paper, thus, points out the need for decentralisation, utilisation of the potential in the counties of Eastern Croatia by starting new businesses and through reindustrialisation

Comparative Analysis of Croatian and Czech Lagging Regions

Regional development is a central subject of different scientific areas of study, and especially economy since a region in a modern context represents a universal unit of monitoring (regional) development. Independent of the level of their development, national economies mostly bear the burden of regional inequalities and, grosso modo, of the existence of regions that fall behind in development. These regions are most vulnerable in post communist and highly centralized countries such as Croatia and the Czech Republic. Croatia and Czech Republic share many similarities, for example transitional post-communist background with centralized national economies dominated by capital city regions. Considering this, the aim of this paper is to analyse regions in Croatia with respect to their economic and social development with a detailed review of the least developed region. With that in mind, a comparative display of Czech Republic and issues concerning Czech lagging regions in economic aand social development will be used to find the common denominator with similar problems in Croatian regions followed by suggestions for solutions on a regional level. This paper uses methods of description and comparative anaysis, wih an analytical review of data made available by relevant institutions

UČINCI KONCENTRACIJE PRERAĐIVAČKE INDUSTRIJE NA REGIONALNI RAST HRVATSKE

Spatial concentration of economic activity is a phenomenon that has important implications for the development potential of the local, regional and national economy. This statement stems from two facts: first, there is a tendency of people and economic activity to concentrate in major cities and regions; and second, similar and connected companies sometimes agglomerate together at a particular location to take advantages of the external economies. This paper examines the effects of spatial concentration of manufacturing industry on Croatian regional growth. The industrial concentration (especially of the manufacturing sector) improves competitiveness among firms, enhances knowledge spillovers and increases the demand for labor and industrial products, leading ultimately to potentially higher growth rates. To examine the effects of concentration of manufacturing industry on Croatian regional growth, a panel analysis is conducted combining spatial (21 Croatian counties) and time (16 time periods) dimensions. The best way to measure concentration is by using the location formula to calculate location quotients weather on the basis of employment or gross value added. Therefore, the location quotients are independent variables of interest in the model whereas GDP, GDP p.c. and Gross value added of manufacturing put, regional economic prosperity and industrial output, respectively. Based on the results of the panel analysis it can be concluded that manufacturing industry is still an important factor of regional growth in Croatia, although its relative significance in Croatian economy is continuously declining over the last two decades.Prostorna koncentracija gospodarske aktivnosti je fenomen koji ima važne implikacije na razvojni potencijal lokalnog, regionalnog i nacionalnog gospodarstva. Ova tvrdnja proizlazi iz dvije činjenice: prvo, postoji tendencija da se ljudi i gospodarske aktivnosti koncentriraju u većim gradovima i regijama; i drugo, slična i povezana poduzeća se koncentriraju na određenom mjestu kako bi iskoristili prednosti eksternih ekonomija. Ovaj rad istražuje učinke prostorne koncentracije prerađivačke industrije na hrvatski regionalni rast. Koncentracija industrije (posebno prerađivačke industrije) povećava konkurentnost među poduzećima, poboljšava širenje znanja i povećava potražnju za specijaliziranim radnicima i industrijskim proizvodima, što u konačnici dovodi do potencijalno većih stopa rasta. Da bi se ispitali učinci koncentracije prerađivačke industrije na hrvatski regionalni rast, u radu se provodi panel analiza kombinirajući prostornu (21 hrvatska županija) i vremensku (16 godina) dimenziju. Najbolji način za mjerenje koncentracije je pomoću lokacijske formule za izračunavanje lokacijskih kvocijenata bilo na temelju zaposlenosti ili bruto dodane vrijednosti. Stoga su u modelima lokacijski kvocijenti nezavisne varijable od interesa, dok su BDP, BDP p.c. i bruto dodana vrijednost proizvodnog sektora zavisne varijable koje služe kao mjera ukupne proizvodnje, regionalnog životnog standarda, te industrijske proizvodnje. Na temelju rezultata panel analize može se zaključiti da je prerađivačka industrija još uvijek važan čimbenik regionalnog rasta u Hrvatskoj, iako njezin relativni značaj u hrvatskom gospodarstvu kontinuirano opada tijekom posljednja dva desetljeća

INSTITUCIJE I EKONOMSKI RAZVOJ TEORIJSKA PERSPEKTIVA PROPUŠTENE INSTITUCIONALNE PODRŠKE U REPUBLICI HRVATSKOJ

The activities of institutions have proven to be extremely important in achieving the economic growth and development of national economies. In addition, observed imbalances within the national economy can be minimized due to the contribution of institutions. Therefore, it is necessary to detect opportunities and activities that could, due to adequate institutional implementation, promote the development of a certain area. In the Republic of Croatia, in general, there is a low level of stimulating environment for small and medium sized enterprises as one of the economy drivers. Besides, the parts of the Republic of Croatia in which the primary sector predominates are generally much less developed (for instance, counties of Eastern Croatia). The aim of this paper is to examine the role and importance of institutions on economic development. In addition, it aims at detecting and describing the institutional obstacles in promotion of small and medium enterprises as well as in presenting the selected examples of missed institutional promotion within the primary sector, as an economic branch most represented in the parts of the Republic of Croatia whose development is much lower than the average or even the lowest. The paper predominantly uses theoretical descriptive methods with additional data given in order to confirm mentioned obstacles within the small and medium enterprises and primary sector.Djelovanje institucija pokazalo se iznimno važnim u ostvarenju gospodarskog rasta i razvoja nacionalnih gospodarstava. Osim toga, uočene neravnoteže unutar nacionalnog gospodarstva mogu se minimizirati zahvaljujući doprinosu institucija. Stoga je potrebno otkriti prilike i aktivnosti koje bi uz primjenu adekvatne institucionalne implementacije, mogle potaknuti razvoj određenog područja. U Republici Hrvatskoj postoji niska razina poticajnog okruženja za mala i srednja poduzeća kao jednog od pokretača gospodarstva. Osim toga, dijelovi Republike Hrvatske u kojima prevladava primarni sektor generalno su znatno manje razvijeni (primjerice, županije istočne Hrvatske). Stoga je cilj ovoga rada ispitati ulogu i važnost institucija u gospodarskomu razvoju. Također, cilj je otkriti i opisati institucionalne zapreke u promicanju malog i srednjeg poduzetništva te prikazati odabrane primjere promašene institucionalne promocije unutar primarnog sektora, kao gospodarske grane najzastupljenije u dijelovima Republike Hrvatske čiji je razvoj znatno niži od prosjeka ili čak najniži. U radu se pretežno koriste teorijske deskriptivne metode potkrijepljene dodatnim podacima kako bi se potvrdilo postojanje navedenih zapreka unutar malog i srednjeg poduzetništva te primarnog sektora

INSTITUCIONALNO POVJERENJE U SLUČAJU HRVATSKIH REGIJA

Institutions and institutional trust can be marked as important determinants of (regional) growth and development in contemporary literature. Aim of this paper is to analyse institutional trust in two Croatian counties and to compare those results with earlier theoretical findings. The methodology consists of in-depth interviews made by survey of counsellors or some of leading functions in two Croatian counties. The results are mostly in accordance with earlier theory findings of institutional trust for Croatian level, i.e. the highest level of institutional trust was related with traditional values, for instance in family, while in some institutions trust varied and had a gap in level of respondents trust, depending of their own experience, for instance in self-government and educational system. At very low level of institutional trust were for instance, political parties and Government. As singled out, some of the main obstacles in achieving high levels of institutional trust were corruption, inconsistency in decision-making and enforcement, non- compliance, slow and complicated procedures, non-transparency, politization. Trust in institutions according to the results, impacts reduction and regulation of uncertainty in the economy. These results could be very worth and a certain guide for policy makers and their future decision-making.U suvremenoj literaturi institucije i institucionalno povjerenje označavaju važne odrednice (regionalnog) rasta i razvoja. Cilj je ovog rada analizirati institucionalno povjerenje u dvije hr- vatske županije i usporediti te rezultate s ranijim teorijskim nalazima. Metodologija se sastoji od dubinskih intervjua obavljenih anketom među savjetnicima ili nositeljima vodećih funkcija u dvije hrvatske županije. Rezultati su uglavnom u skladu s ranijim nalazima prema teoriji institucionalnog povjerenja na hrvatskoj razini, tj. najviša razina institucionalnog povjerenja povezuje se s tradicionalnim vrijednostima, npr. s obitelji, dok je u nekim institucijama povjerenje variralo i postojao je jaz na razini povjerenja ispitanika, ovisno o vlastitu iskustvu, npr. u sustavu samouprave i obrazovanja. Na vrlo niskoj razini institucionalnog povjerenja, na primjer, nalaze se političke stranke i vlada. Navodi se da su neke od glavnih zapreka u postizanju visoke razine institu- cionalnog povjerenja korupcija, nedosljednost u donošenju i provedbi odluka, nepoštovanje zakona, spori i komplicirani postupci, netransparentnost, politizacija. Povjerenje u institucije, prema rezultatima istraživanja, utječe na smanjenje i regulaciju nesigurnosti u gospodarstvu. Ti bi rezultati mogli biti vrlo vrijedni i određeni vodič za tvorce politika i za njihovo donošenje odluka u budućnosti

BIBLIOMETRIJSKA ANALIZA LITERATURE O REGIONALNOM RAZVOJU I MODELU CENTAR-PERIFERIJA U EUROPI

This paper investigates the effect of spatial divisions and their demarcations on the formation of networks and the inadequacies of specific policy implementations in mitigating marginalization processes. Despite the controversies surrounding numerous theoretical premises, the center-periphery model remains widely accepted. Implications of these ideas by synthesizing critical findings from a vast array of prior literature using a comprehensive bibliometric analysis have been clarified. Innovation and a readjustment of regional policy are required to address the disparities between the center and the periphery. Regional development policies of the European Union aim to reconcile the socioeconomic chasm between prosperous and peripheral regions. The localization theory of regional development provides insights into the spatial distribution of firms, the dispersion of economic prosperity, and the potential for future growth. These insights provide valuable perspectives on regional policies and the factors that influence the geographical distribution of economic activity.Ovaj rad istražuje učinak prostornih podjela i njihovih razgraničenja na formiranje mre- ža i nedostatke provedbe specifičnih politika u ublažavanju procesa marginalizacije. Unatoč suprotnim shvaćanjima oko brojnih teorijskih premisa, model centar-periferija i dalje je ši- roko prihvaćen. Korištenjem sveobuhvatne bibliometrijske analize pojašnjene su implikacije ovih ideja sintetiziranjem kritičkih nalaza iz golemog niza prethodne literature. Potrebne su inovacije i prilagodba regionalne politike kako bi se riješile razlike između centra i periferije. Politike regionalnog razvoja Europske unije imaju za cilj pomiriti socioekonomski jaz između prosperitetnih i perifernih regija. Lokalizacijska teorija regionalnog razvoja daje uvid u pro- stornu distribuciju poduzeća, disperziju ekonomskog prosperiteta i potencijal za budući rast. Ovi rezultati pružaju vrijedne perspektive o regionalnim politikama i čimbenicima koji utječu na geografsku distribuciju gospodarske aktivnosti

REGIONALNA EKONOMSKA TRANSFORMACIJA – MOŽEMO LI UČITI OD ZEMALJA SREDNJE I ISTOČNE EUROPE

Modern economies and their smaller units – regions, regardless of their development level, witness significant inequalities. European regions differ significantly in their economic structure, history, available workforce skills, technological profiles, institutional and managerial capacities, and many other aspects. Most Central and Eastern European Countries (CEECs) are not an exception. Specifically, differences exist between national economies and between NUTS 3 regions within national economies, with some regions lagging behind. The inequality problem is addressed by the EU’s Cohesion Policy in the CEECs, keeping in mind that CEECs are less developed than the average of the EU28 (27). Through its Cohesion Policy, the EU is seeking to reduce economic disparities between regions. An important issue is to create region-specific policies to foster regional growth. Therefore, Cohesion Policy instruments should be used in Central and Eastern European countries to tackle regional divergences and assist them in balancing their regional development as they formulate sectoral policies. Many analysts argue that the higher the movement towards a post-industrial (information, service) society, the more outdated the growth, production, and productivity inherited from industrial capitalism will be. Technological innovation has always been a crucial driver of progress, but over the last 50 years, its pace and significance have been growing. Technologically leading regions have long embraced innovation and are forging ahead, whereas lagging regions require a complete transformation of their economic (industrial) structure. Therefore, this paper aims to analyze Cohesion Policy in the CEECs by analyzing the relationship between GDP per capita and spending of EU funds. Moreover, the aim is to investigate the importance of vertical and horizontal industry policy in CEECs. To do that, the paper analyzes the total output growth and inter (intra) industry exchanges of Central and Eastern European countries (CEECs). More specifically, an analysis of the changes in intra-industry trade (two-way trade) is performed, which shows how far bilateral imports and exports match within sectors. The paper reviews current theoretical knowledge and empirical research on the importance of the regional dimension of industrial policy, respecting the paradigm of innovative sustainability. The main methods used in the paper comprise a comparative analysis based on earlier theoretical and empirical studies in the field of regional economic development, as well as an analysis of industrial performance.Neovisno o stupnju razvijenosti suvremenih zemalja i njihovih regija, postoje značajne regionalne nejednakosti i neravnoteže. Europske regije značajno se razlikuju po svojoj gospodarskoj strukturi, povijesti, raspoloživim vještinama radne snage, tehnološkim profilima, institucionalnim i upravljačkim kapacitetima i mnogim drugim aspektima. Većina zemalja Srednje i Istočne Europe koje su članice EU nisu iznimka, a to je posebno evidentno na NUTS 3 regionalnoj razini. Kada se promotri prosječna razvijenost EU zemalja, razlike unutar zemalja Srednje i Istočne Europe koje su članice EU još su veće. Kohezijskom politikom EU nastoji smanjiti ekonomske razlike među regijama, ali programi i instrumenti ove politike ipak su u međuovisnosti s razvojnim specifičnostima regija. Neminovna je činjenica kako su instrumenti kohezijske politike značajan pokretač razvoja i regionalne razvojne transformacije zemalja Srednje i Istočne Europe koje su članice EU i mogu pomoći uravnoteženju regionalnog razvoja, s posebnim naglaskom na sektorske politike. Tehnološke inovacije uvijek su bile ključni pokretač napretka, ali tijekom posljednjih 50 godina njihov tempo i utjecaj impresivno rastu. Vodeće tehnološki razvijene regije kontinuirano razvijaju i prihvaćaju inovacije kao osnovu napretka, a regije koje zaostaju zahtijevaju potpunu transformaciju svoje ekonomske (industrijske) strukture. Shodno tome, cilj ovog rada je utvrditi efikasnost provedbe kohezijske politike u zemljama Srednje i Istočne Europe koje su članice EU analizom BDP-a po stanovniku i alokaciji i apsorpciji sredstava iz EU fondova. Nužno je istražiti važnost vertikalne i horizontalne industrijske politike u zemljama Srednje i Istočne Europe koje su članice EU. Kako bi se to postiglo, u radu se analizira ukupan rast proizvodnje i među industrijska te unutar industrijska razmjena (dvosmjerna trgovina) zemalja Srednje i Istočne Europe koje su članice EU i utvrđuje se utjecaj članstva promatranih zemalja u EU na njihovu razvijenost i transformaciju industrijske osnovice

Impact of information technology on business communication

Poslovna komunikacija vrlo je važan dio poslovanja, organizacije i upravljačkoga sustava dok informacij - ska tehnologija predstavlja spregu mikroelektronike, računala, telekomunikacija i softvera, koja omogućuje unos, obradu i distribuciju informacija. Dakle, informacijska je tehnologija jedna od ključnih generičkih tehnologija jer prodire u sva područja gospodarstva, znanosti, društvenoga i privatnoga života i u njih unosi radikalne promjene. Različite informacijske tehnologije i komunikacija usko su povezani. Naime, nova, suvremena ili 2.0 poslovna komunikacija definira aktivne čimbenike u potpuno novoj okolini procesa poslovnoga komuniciranja. Za djelotvornu uporabu novoga pristupa poslovnoj komunikaciji, potrebno je dobro poznavanje različite komunikacijske tehnologije. Cilj rada odnosi se na prikaz sinteze informacija o suvremenoj poslovnoj komunikaciji istraživačkoga osvrta koji daje pregled koliko informacijska tehnologija utječe na poslovnu komunikaciju u praksi na primjeru privatnoga gospodarskoga subjekta.Business communication is a very important part of any business, organization and management system, while information technology merges microelectronics, computers, telecommunications and software, thus facilitating the input, processing and distribution of information. Information technology is one of the key generic technologies because it has entered all spheres of economic, scientific, social and private life and has brought with it radical changes. Different information technologies and communication are closely linked. The new business communication using Web 2.0 technology defines active factors in a completely new business communication environment. For the new approach to business communication to be effective, a good knowledge of various communication technologies is required. The aim of this paper is to present contemporary business communication and demonstrate how much information technology affects business communication using a practical example (private business)