Institute of Economics Zagreb

ABSTRACT This paper examines the factors that influence public perceptions of local development and government economic measures in Croatia during the COVID-19 pandemic. Survey data indicate that trust in local government, political parties, and political affiliation significantly influence the views of social actors, while objective indicators have a minimal impact. People often prioritise perceived needs over actual ones due to limited information, cognitive biases, and the influence of political context. The findings underscore the need for greater transparency, participatory governance, regular monitoring, and public reporting. Addressing subjective perceptions is crucial to align public understanding with policy goals and development outcomes.

ABSTRACT This article estimates the effect of Excessive Deficit Procedure (EDP) on fiscal consolidation for EU member states between 2005 and 2019. Using the quarterly data which enables more time granularity and the recent advances in the difference-in-difference literature which allow for differently timed, non-absorbing treatments with dynamic effects, we estimate the causal effect of EDP on cyclically adjusted primary balance. Our findings point to a strong fiscal consolidation effect in the EU under the EDP, measuring to 1.69% point improvement in fiscal stance. While the improvement of fiscal stance under the EDP acted as a counter-cyclical measure during economic expansion, we descriptively show that fiscal consolidation due to the EDP directed policymakers towards a restrictive pro-cyclical stance, especially during the global financial crisis. Finally, we contextualize these findings within the new EU’s fiscal rules, which emphasize the medium-term fiscal adjustment.

Abstract This study seeks to answer the following research question: How do defense spending and conflict impact economic growth in Europe, and what role does NATO membership play in shaping these dynamics? Using a panel dataset of 40 European countries from 1999 to 2023, the analysis investigates a change in security dynamics in Europe post-2014, determinants of military expenditure, whether NATO’s influence is more pronounced for countries closer to Russia, and how military expenditure and conflict impact economic performance. Employing panel econometric techniques, the analysis reveals that while military expenditure is not directly correlated with GDP per capita growth, conflict exerts a profoundly negative effect, with battle-related deaths significantly reducing economic performance. NATO membership is associated with increased defense spending, where geographical distance to Russia implies weakening of NATO countries’ military budgets. For NATO members, higher US military expenditure correlates with reduced European spending, highlighting reliance on American security provisions. The findings underscore the complex dynamics between defense allocations, alliance structures, and economic conditions, emphasizing the need for balanced policy approaches that address security imperatives without compromising long-term economic growth.

The co-authored book Making Policy Move (Clarke, Bainton, Lendvai and Stubbs 2015) was an attempt to apply insights from theories of translation and assemblage to the field of policy studies. The mantra ?when policy moves it is always translated? was based, as much if not more, on postcolonial and decolonial theories as it was on the ?interpretive turn? in policy studies and on the idiosyncrasies of Actor Network Theory and the work of Deleuze and Guattari. In this paper, revisiting the book, we suggest that the conceptual, empirical, moral-ethical and political implications of taking colonialism and racism seriously were underdeveloped and we outline, in broad brush stroke terms, some of the ways this could be remedied in future work. We emphasize, in particular, the importance of a politics of translation for understanding coalescing crises, the rise of authoritarian neoliberalism, and the collapse of democracy and the associated rise of techno-politics. We seek to situate reconstituted racialised hierarchies, patriarchal and heteronormative ideologies, and forms of class oppression within policy assemblages co-constituted through colonialism and neo-colonialism.

U radu su navedene potencijalne ekonomske prednosti implementacije 5G infrastrukture u Republici Hrvatskoj kroz kritički pregled relevantne literature. Pojava 5G infrastrukture obećava transformativne promjene u različitim sektorima, preoblikovanje industrija i poticanje gospodarskog rasta. Brojne su studije i istraživanja koja predviđaju da će 5G imati značajan ekonomski utjecaj, otvarajući nova tržišta i mogućnosti za rast u mnogim industrijama kroz stvaranje novih poslova, poboljšanje produktivnosti i poticanje globalnog ekonomskog rasta. Ovaj rad predstavlja regulatorni okvir za 5G infrastrukturu u Hrvatskoj i EU, uz identificiranje potencijalnih koristi koje bi različite industrije i slučajevi korištenja mogli imati od implementacije 5G mreže i povezanih digitalnih mobilnih tehnologija. Cilj ovog rada je dati detaljan i kritički pregled takvih istraživanja te se posebno kroz analizu dostupne literature fokusirati na ključne sektore u Republici Hrvatskoj kod kojih bi potencijalne koristi od 5G mreže bile najveće. Ti sektori uključuju proizvodnju, IKT, usluge javnog sektora, trgovinu na veliko i malo, financije i osiguranje, prijevoz i skladištenje, kao i turizam. Doprinos rada sastoji se u identifikaciji i kompilaciji potencijalnih izazova implementacije 5G mreže iz postojeće literature.

The enhancement of Raman signals using photonic crystal structures has been the subject of numerous experimental and theoretical studies, leading to a variety of issues and inconsistencies. This paper presents a comprehensive experimental investigation into the impact of alignment between the laser excitation wavelength and the specific position of the photonic band gap on signal enhancement in Raman spectroscopy. By employing one-dimensional (1D) porous silicon photonic crystals, a systematic analysis across a large number of spectra was conducted. The study focused on examining the signal enhancement of both the Raman ∼520 cm-1 silicon band, representing the constituent material of photonic crystal, and the most prominent Raman bands of crystal violet, used as a probe molecule. The probe molecules were both infiltrated into and adsorbed on top of the photonic crystal structure. The obtained experimental results for the contribution of 1D photonic crystals to Raman signal enhancement are much smaller compared to most predictions. The Raman signal of silicon and the signal from the probe molecule are enhanced ≤2.5 times when the laser excitation aligns with the edge of the photonic band gap, strictly defined as the position at the very bottom of the reflectance peak. The results have been discussed within the context of theoretical explanations.

Pandemija bolesti COVID-19 izazvala je ekonomske šokove te je potaknula rasprave o tome kako poboljšati otpornost lokalnih i regionalnih jedinica na krize. Inovacije javnog sektora predstavljaju izazov, ali donose koristi, posebno za vrijeme društveno-gospodarskih kriza. Rad istražuje provedbu inovacija u javnom sektoru na lokalnoj i regionalnoj razini. Dok se većina dosadašnjih istraživanja bavi istraživanjem uloge privatnog sektora u provedbi inovacija u javnom sektoru, u ovom je radu cilj istražiti sposobnost lokalnih i regionalnih jedinica za provedbu inovacija i prepreke za provedbu inovativnih aktivnosti iz perspektive lokalnih dionika. Istražuje se postoji li heterogenost između jedinica lokalne i regionalne samouprave te lokalnih razvojnih agencija i lokalnih akcijskih grupa u razini inovacija i, ako postoje, s kojim se preprekama lokalni dionici susreću pri uvođenju ili provedbi inovacija. Također, istražuje se i utjecaj identificiranih prepreka na proces uvođenja inovacija. Rezultati ukazuju na tri glavna čimbenika koji narušavaju proces uvođenja inovacija u javnom sektoru. To su prepreke vezane za kompetencije, birokratske prepreke i poteškoće u financiranju. Pri tome su kao najznačajnije prepreke procesa uvođenja inovacija u hrvatskom javnom sektoru identificirane financijske poteškoće te prepreke vezane za kompetencije.

Abstract This research assesses perception of corruption in business-to-business and business-to-government interactions by using empirical evidence from Serbia. Based on the survey data, it captures the perceptions of corruption of business owners and managers of small and medium enterprises (SMEs) and examines their attitudes towards informal, licit, or illicit, business practices. The typology of SMEs according to their opinion on corruption- and institutional-related obstacles resulted in three different clusters, based on several variables. Moreover, empirical findings show that business is not much hindered by regulations but with a common lack of trust in institutions, crime, and perceived corruption. SMEs are perceived as particularly affected by a negative corrupt environment where large companies are seen as the source of corruption. The findings allow for the creation of lawful and incorruptible business policies, as well as ideas on preventing the common practice of illicit trading with job positions in the public sector.

The purpose of this article is to estimate regional economic impact of tourism in Croatia. Rich cultural heritage and natural resources are factors which have contributed to the rapid increase in tourist arrivals in Adriatic Croatia, especially after the removal of all barriers to free movement following Croatia’s admittance to the European Union. While tourism is one of the key sectors which has contributed to Adriatic Croatia’s growth and development, a high share of tourism in gross value added and employment has increased the region’s vulnerability to external shocks, such as the outbreak of COVID-19 pandemic in 2020. The estimation of tourism’s role in Croatia’s regions is based on the regional input–output model, which identifies total effects of tourist demand. Results of the study reveal structural differences in Croatia’s regional growth path. While Continental Croatia specialises in more sophisticated industrial sectors, the economy of the Adriatic region is strongly dependent on tourism. The decrease in tourist arrivals due to COVID-19 travel restrictions resulted in a significant decline in economic activity in Adriatic Croatia. Economic activity in the hospitality sector was most affected by decreased demand, but other sectors which deliver inputs required for tourism services were also significantly impacted.

This study examines the changes in the persistence and seasonality inherent in the Croatian tourism sector in light of the onset of the COVID-19 pandemic. First, we differentiate between the changes in the persistence and seasonal behavior with respect to domestic and foreign tourist arrivals and overnight stays. Second, with nearly 90% of the Croatian tourism sector tied to the seven counties along the Adriatic coast we investigate the differential regional impact on persistence and seasonal behavior. Our results indicate the disruption was much more prominent for foreign tourist arrivals and overnight stays relative to domestic tourist arrivals and overnight stays with respect to the increased persistence associated with the onset of the pandemic along with the seasonal autoregressive component reduced considerably.