The underground economy in Croatia

This article is a succinct description of research into the underground economy (UE) in Croatia in the 1990 to 2000 period. The circumstances surrounding and the reasons for the origin of the UE are explained, the dimensions of and changes in the UE are estimated at the level of the whole of the economy and in terms of certain industries. Also the socio-cultural and institutional dimensions of the UE are analysed, including the influence of formal and informal norms, privatisation, poverty, self-employment and so on. Various evaluation methods give different results ñ the national accounting discrepancy between income and expenditures method (below: national accounting discrepancy method) shows a growth of the UE from 1990 to a maximum of 37% of GDP in 1993 and a steady reduction to 7% of GDP in 2000. In accordance with that method in the 1990-1995 period, the UE came on average to about 25%, and in 1996-2000 to an average of 10% of GDP. The Eurostat method and estimates of tax evasion coincide with these trends, while two monetary methods and the consumption of electrical energy method show a rise in the UE in the 1995-1999 period, with trends at annual levels of between 22 and 34% and a fall in 2000. With reservations because of the uneven results obtained by these various methods and because of uncertainty whether this is a matter of a genuine reduction of the UE or of an improvement in statistics, we nevertheless have to conclude that this research indicates that there has been a genuine reduction in the UE. The results of the project indicate a negative correlation between the UE and GDP growth, then work ìon the blackî as the main reason for the UE, and the differentiation of statistical and economic reasons for the UE. Reasons for the reduction of the UE might be an improvement of the statistical system, a change in the structure of consumption, the introduction of VAT, the stabilisation of the large retail systems, the entry of foreign firms into the Croatian market, a change in the image of the government and so on. Unfortunately, there is still a lack of the kind of transparency and quality of public services that would have a considerable impact on the further reduction of the UE. The basic recommendation of this research is that for any reduction of the UE, it is more important to prevent the causes than to penalise the consequences, and in connection with this it is the institutional sphere that is crucial, the relationship of the government and the economy, i.e., the speed with which the government redefines its role in the market. Basic recommendations are also put forward for the improvement of institutions, for example, of the government, the process of privatisation, statistics, the tax system, the pensions system and so on

The Underground Economy in Croatia

This article is a succinct description of research into the underground economy (UE) in Croatia in the 1990 to 2000 period. The circumstances surrounding and the reasons for the origin of the UE are explained, the dimensions of and changes in the UE are estimated at the level of the whole of the economy and in terms of certain industries. Also the socio-cultural and institutional dimensions of the UE are analysed, including the influence of formal and informal norms, privatisation, poverty, self-employment and so on. Various evaluation methods give different results . the national accounting discrepancy between income and expenditures method (below: national accounting discrepancy method) shows a growth of the UE from 1990 to a maximum of 37% of GDP in 1993 and a steady reduction to 7% of GDP in 2000. In accordance with that method in the 1990-1995 period, the UE came on average to about 25%, and in 1996-2000 to an average of 10% of GDP. The Eurostat method and estimates of tax evasion coincide with these trends, while two monetary methods and the consumption of electrical energy method show a rise in the UE in the 1995-1999 period, with trends at annual levels of between 22 and 34% and a fall in 2000. With reservations because of the uneven results obtained by these various methods and because of uncertainty whether this is a matter of a genuine reduction of the UE or of an improvement in statistics, we nevertheless have to conclude that this research indicates that there has been a genuine reduction in the UE. The results of the project indicate a negative correlation between the UE and GDP growth, then work .on the black. as the main reason for the UE, and the differentiation of statistical and economic reasons for the UE. Reasons for the reduction of the UE might be an improvement of the statistical system, a change in the structure of consumption, the introduction of VAT, the stabilisation of the large retail systems, the entry of foreign firms into the Croatian market, a change in the image of the government and so on. Unfortunately, there is still a lack of the kind of transparency and quality of public services that would have a considerable impact on the further reduction of the UE. The basic recommendation of this research is that for any reduction of the UE, it is more important to prevent the causes than to penalise the consequences, and in connection with this it is the institutional sphere that is crucial, the relationship of the government and the economy, i.e., the speed with which the government redefines its role in the market. Basic recommendations are also put forward for the improvement of institutions, for example, of the government, the process of privatisation, statistics, the tax system, the pensions system and so on.underground economy, Croatia

Cryptocurrency functioning in the global economy

The article reveals a conceptual basis of the cryptocurrency functioning. The main types of cryptocurrencies are featured and analyzed as well as their general strengths and weaknesses. Based on the price dynamics correlation analysis of some cryptocurrency types, a general low level of dependence between digital assets is established. The main functions of the cryptocurrency are formulated in the form of transformed money functions. Also, additional functions of cryptocurrencies are defined on the basis of their innovative nature, as well as the role in the modern financial system and world economic relations

Tax administration reform in transition: the case of Croatia

This Occasional Paper reports the research results of a project on the tax administration in Croatia conducted by the Institute of Public Finance in Zagreb for the Croatian Tax Administration. The project team report was finalised in summer 1997 and it includes ten papers which are published in Croatian in the Institute’s journal “Financijska praksa”, Volume 22 , Number 1-2 (April 1998). This paper is the summary of the project written by Katarina Ott (Institute of Public Finance)

Utjecaj smanjenja cijene nafte na iransko gospodarstvo

The aim of this study is to assess the impacts of oil price reduction on Iran’s economy. In order to simulate this shock, the global trade analysis project (GTAP) model with its data done by using. In the new created data aggregation, oil exporting in Iran and the rest of the world countries as economic new regions, ten new economic sectors have been created, among which the oil is introduced as one sector as well as five endowments. The standard economic closure was changed, and decline in world oil price was simulated in model as a policy shock. The results show that oil export revenue and the mineral commodity export earnings will decrease, but other production sectors’ exports will increase. The trade balance of Iran will be affected negatively and strongly. Also, oil and other services production decreased. In the production sectors’ market, the demand for labor, natural resources, and investment decreased dramatically, and the demand for land increased. Using equivalent variation (EV), changes in Iran’s welfare is high negative. Finally, deflation, reduction in value and quantity of GDP and changes in consumption combination from public to private sector are the other economic impacts of reduction in oil price on Iran’s economic. It is suggested that future studies are done using dynamic models and up-to-date data. In addition, policy makers need to rebound internationally and within OPEC to raise oil prices.Sažetak Cilj ovoga rada je istražiti utjecaj smanjenja cijena nafte na iransko gospodarstvo. Za simuliranje šoka, analiziraju se podaci uz primjenu modela GTAP-a (Global Trade Analysis Project). U novo prikupljenoj skupini podataka o izvozu nafte u Iranu i ostalim zemljama svijeta kao novim gospodarskim regijama, stvoreno je deset novih razvijenih gospodarskih sektora, u koje su agregirani nafta kao jedan sektor i pet resursa čimbenika proizvodnje. Umjesto standardnog modela zatvorenog gospodarstva, pad cijene svjetske nafte simuliran je modelom politike šoka. Rezultati pokazuju da će prihodi od izvoza nafte i izvozne vrijednosti mineralnih proizvoda biti smanjeni, ali će se povećati izvoz ostalih proizvodnih sektora. Na trgovinsku bilancu Irana to bi negativno i snažno utjecalo kao i dovelo do pada proizvodnje nafte i ostalih usluga. Na tržištu proizvodnih sektora, potražnja za radnom snagom, prirodnim resursima i investicijama dramatično se smanjuje, a potražnja za zemljištem povećava. Korištenjem ekvivalentne varijacije (EV), vidljive su negativne promjene koje utječu na blagostanje Irana. I na kraju, deflacija, smanjenje vrijednosti, pad BDP-a i promjene u potrošnji kombinirane vrijednosti od javnog do privatnog sektora predstavljaju dodatni gospodarski utjecaj Irana na pad cijene nafte. Predlaže se da buduće studije budu provedene uz korištenje dinamičkih modela i ažuriranih podataka, a preokret kreatora politike treba biti usmjeren na povećanje cijena nafte na međunarodnoj razini i unutar OPEC-a

UTJECAJ COVID-19 PANDEMIJE NA HRVATSKO GOSPODARSTVO

This article titled “The effect of the COVID-19 pandemic on the Croatian economy” deals with exceedingly current events triggered by the pandemic, which have reflected on the national and global economy. Based on the currently available data and the survey of 358 respondents (from both the private entrepreneurship sector and public administration), the effect of COVID-19 on the Croatian economy is observed through declining employment, the required recovery years, and declining GDP. The differences and similarities between this and the great global economic crisis of 2008/2009 as well as the opinion of entrepreneurs on which crisis has had more significant consequences for the economy were examined. A linear regression model predicts the declining employment in the recovery years. The entrepreneurs agree that the crisis caused by the COVID-19 pandemic is far more destructive and devastating to the economy, primarily because there is no end in sight even though the vaccine has been found. The unanimous agreement of the entrepreneurs is that, without further measures aimed at preserving the economy put in place by the Government, it will not be possible to suppress a further decline in employment and GDP, which will lead to a prolongation of the necessary recovery time for the Croatian economy. This research is the basis for further research on the effect of the COVID-19 pandemic on the Croatian economy.Članak pod naslovom „Utjecaj COVID-19 pandemije na hrvatsko gospodarstvo“ bavi se vrlo aktualnim događajima izazvanim pandemijom, a koje se odrazilo na nacionalno i globalno gospodarstvo. Na temelju trenutno raspoloživih podataka i provedene ankete na 358 ispitanika (iz realnog sektora i javne uprave) u radu se analiziraju posljedice COVID-19 na hrvatsko gospodarstvo promatrano kroz pad zaposlenosti, potrebne godine oporavka te pad BDP. Također su analizirane sličnosti i razlike sa velikom svjetskom ekonomskom krizom 2008/2009 godine te je ispitano mišljenje poduzetnika o tome koja kriza ima značajnije posljedice za gospodarstvo. Modelom linearne regresije je predviđen pad zaposlenosti u godinama oporavka. Poduzetnici su složni u procjeni da je kriza uzrokovana COVID-19 pandemijom daleko razornija i pogubnija za gospodarstvo, prvenstveno stoga jer joj se ne nazire kraj usprkos pronalasku cjepiva. Jednoglasna je poruka poduzetnika da bez daljnjih mjera za očuvanje gospodarstva od strane Vlade neće se moći zadržati daljnji pad zaposlenosti, kao i BDP-a, što će dovesti do produljenja potrebnog vremena oporavka hrvatskog gospodarstva. Ovo istraživanje je osnova za buduća istraživanja utjecaja COVID-19 pandemije na hrvatsko gospodarstvo

Is Unofficial Economy a Source of Corruption?

This paper discusses the link between unofficial economy and overall economic efficiency. Special emphasis is put on tax evasion and corruption and their interaction with unofficial economy. First, we address the role of the state in the genesis of unofficial economy and corruption. Second part gives more insight into the multitude and ambiguity of definitions used to describe unofficial economy and the impact of the particular definition chosen on the final conclusions. Since we opt for the 'classical' definition of unofficial economy as unrecorded economic activity, we argue that unofficial economy in transition countries, according to this definition, does not hurt economic efficiency and growth. It is also important to make a distinction between unofficial economy and tax evasion as well as between unofficial economy and corruption. We give an argument in support of the view that those kind of activities are closer linked with official than unofficial economy, as the former uses them as a mechanism for protection from the competition. Unlike unofficial economy, these irregular activities pose more serious threat to general welfare, economic efficiency and growth. We conclude that both unofficial economy and irregular activities are caused by high degree of politicisation and reducing it gives positive impact in reducing both. In the final part we address the measures required and a policy design which could help preventing irregular activities. This would not completely eliminate unofficial economy, but would remove activities which impair economic efficiency and growth.efficiency, makroeconomics, microeconomics, corruption

Bolezni drevja, ki so bile določene v okviru poročevalske, prognostične in diagnostične službe za gozdove v Sloveniji v obdobju 1982-2012

The Reporting, Prognostic and Diagnostic (RPD) service for forests is a legal forest protection organization in Slovenia and part of the public forest service. The aim of our study was to analyse RPD reports from 1982 to 2012. We analysed 120 reports that contained 992 records of tree diseases encompassing 189 species and genera. The most frequently recorded were foliage diseases (351 records, 42 species), needle diseases (162 records, 23 species), rots (111 records, 56 species), cankers (73 records, 9 species), and shoot diseases (72 records, 14 species). Ten most frequently recorded species were the following fungi: Erysiphe alphitoides, Lophodermium spp., Cryphonectria parasitica, Rhytisma acerinum, Sawadaea bicornis, Diplodia pinea, Hymenoscyphus pseudoalbidus, Mycosphaerella pini, Blumeriella jaapii, and Cronartium ribicola.Poročevalska, prognostična in diagnostična služba za gozdove (RPD) je uradna organizacija varstva gozdov v Sloveniji, ki deluje v okviru javne gozdarske službe. Cilj naše študije je bil analizirati poročila RPD od 1982 do 2012. Analizirali smo 120 poročil, ki so obsegala 992 zapisov in 189 vrst, ki povzročajo bolezni drevja. Najpogosteje so bile zabeležene bolezni listja (351 zapisov, 42 vrst), bolezni iglic (162 zapisov, 23 vrst), trohnobe (111 zapisov, 56 vrst), raki (73 zapisov, 9 vrst) in bolezni poganjkov (72 zapisov,14 vrst). Najpogosteje so bile zabeležene naslednje vrste gliv: Erysiphe alphitoides, Lophodermium spp., Cryphonectria parasitica, Rhytisma acerinum, Sawadaea bicornis, Diplodia pinea, Hymenoscyphus pseudoalbidus, Mycosphaerella pini, Blumeriella jaapii in Cronartium ribicola

Nezakonito gospodarstvo u poslijeprivatizacijsko doba; koliko daleko od temelja novog iskustva? Primjer korporacijskog upravljanja i bankarskog sektora u Češkoj Republici

Rad govori o nezakonitim ekonomskim aktivnostima u poslijeprivatizacijsko doba, opisuje pojavne oblike patologije tranzicijskog sustava u – za cijelo gospodarstvo ključnom – području fondova za privatizaciju i povezanome bankarskom sektoru u Češkoj Republici. Iako bi se moglo očekivati da će model vaučerske privatizacije primijenjen u Češkoj Republici biti otporan na nezakonite (ili nemoralne) aktivnosti, autor jasno pokazuje različite metode što su poslužile za pljačku imovine, poput namjernog stvaranja gubitka u trgovini vrijednosnicama, što šteti investicijskim fondovima, kupovanja bezvrijednih dionica, preuveličavanja ugovornih jamstava, nepovoljnih forward transakcija, futures opcija, zloupotrebljavanja povjerljivih informacija i dr. U zaključku autor naglašava da će Češkoj Republici trebati još desetljeće za stvarni završetak tranzicije, i to samo u uvjetima uspješnog nametanja i prihvaćanja zakonskih preduvjeta i ostalih zahtjeva za ulazak i članstvo u EU