Numerous modern indicators are attempting to integrate better economic, political, social, and environmental ambitions to uncover potential synergy, trade-offs, and future views that center around ...the notion of a so-called green economy. As long as the various indica-tors are not bounded in one comprehensive measurement, utilizing knowledge of relevant infor-mation and statistics that are crucial for monitoring the progress will not give us answers on the progress towards green growth either. Without an adequate measurement framework and robust statistics, the evaluation of the green economy is open to subjective reasoning.
The impact of currency depreciation on the trade balance is still an empirically unanswered question within international and financial economics. This paper is pointed towards partial clarification ...of that question as the author analyses trade perspectives in Croatia through the concept of an S-curve. The S-curve is an extension of the J-curve, for the impact of exchange rate depreciation wears out after a while and there is no further improvement when all impacts are realised, meaning that at the top of the curve the slope is zero or negative. By focusing on the relationship between the terms of trade (exchange rate) and trade balance the author is trying to provide some new insights into trade dynamics over a business cycle in Croatia. The main result is that both unconditional and conditional relations (conditional to technology's role identified in the vector error correction model) are consistent with the empirical S-curve pattern of cross-correlations between the trade balance and the terms of trade (exchange rate). Nonetheless, the inability of the S-curve to depict the strength and/or the speed of the adjustment process before and after the terms of trade/exchange rate depreciation explains its limitation within policy recommendations for Croatia.
Purpose: The main objective of this research was to determine the impact of capital structure on the profitability of Croatian companies. The second objective was to analyze the consistency of the ...way in which capital structure is managed with respect to the existing theories of capital structure.
Methodology: A survey was conducted on the sample of Croatian companies for the period from 2009 to 2019 using panel model GMM estimation. In order to be included in the sample, all shares listed on the Zagreb Stock Exchange were considered which meet the liquidity criterion and are part of the non-financial sector. Accordingly, the sample consists of 30 shares.
Results: The research established a significant relationship between capital structure and profitability, with a negative sign. With these results, Croatian companies are placed alongside other companies from countries that belong to the group of developing countries, and diametrically opposed to the results obtained for the markets of developed countries. Indirectly, the validity of theories of capital structure formation on the Croatian market was tested, and it was proved that the behavior of Croatian companies can best be described by settings of the trade-off theory of capital structure.
Conclusion: For Croatian companies, this means that any further use of debt will lead to a decline in profitability. Consequently, this means that domestic companies cannot make significant use of the current situation of low interest rates on loans, and therefore they lag behind in terms of the level of investments made.
The surprising resilience of current communist states towards democratic opening and a mainstream neoliberal economic 'way-of-life' in the past did not hamper their economic performances and ...development perspectives as much as we would expect. In the countries that are one-party states, in which the institutions of the ruling party and the state have become intertwined, ostensibly arguing for political and economic equality, still maintaining a firm control over the economic resources, we could expect economic relationships that are au contraire modern economic trends. However, China for example, a supposedly communist economy, with its breath-taking socio-economic progress, elusively ignores mainstream economic vocation, progressively advancing towards establishing itself as a sacrosanct economic force. In that manner, the goal of this paper is to (1) evaluate the dynamics of relevant macroeconomic variables in three current communist states (China, Laos and Vietnam) in order to (2) expose possible deviations to modern capitalist trends as well as to (3) provide relevant information that can serve as a guideline for macro policies. For that purpose, we analyzed the relationship between the GDP, price, money and the exchange rate by using VAR modeling. Results revealed coherent macroeconomic dynamics with a causality that is in accordance to a common capitalist economic framework.
The introduction of the euro for Croatian citizens meant the abandonment of the deutsche mark, a reliable currency, which had been used for a long time for comparison purposes and savings. Today, ...Croatia is a small, opened, indebted and highly euroised country, in which frequently mentioned introduction of euro is seen as a solution that could improve country’s economic position. The question of a common monetary policy is closely related to the issue of business cycle coherence between the members of such an area. By analyzing two measures of business cycle coherence, namely synchronicity and similarity, between Croatia and new EMU members, we want to reconcile with vast empirical evidence supporting the hypothesis that monetary integration process results from a greater business cycle convergence and leads to an optimal currency area which finally leads to greater economic welfare in each of the member countries. Estimations are based on deviation cycle approach. Results in general indicate relatively similar cycle dynamics across the observed variables, suggesting that Croatia satisfies this selective criterion for its inclusion into the monetary union. Nonetheless, monetary integration is far more complicated issue, hence it requires further scientific verification and conceptualization.
Business cycle - growth nexus: a review Škare, Marinko; Tomić, Daniel
Technological and Economic Development of Economy,
05/2015, Letnik:
21, Številka:
3
Book Review, Journal Article
Recenzirano
Odprti dostop
Frequent reversals in business cycles pose the question whether country can achieve macroeconomic stability and/or economic growth by coordinating its economic policies. Thus, what is the role of ...economic policy within the short/long run in amplifying or dampening shocks? Business cycle - economic growth relationship is rather ambiguous and has, thus, attracted controversy. In this sense the (dis)belief that there indeed exists a relationship between the economic growth and business cycle, and their long-run convergence brings us to three important hypotheses that: (1) the evaluation of cycle-growth bond is inconclusive, (2) empirical testing of cycle synchronization is exaggerated and (3) the hypothesis of coupling/decoupling is ambiguous and can be misleading. Economic growth is a complex process and cannot be attributed to a single factor of observance hence this essay is just a tool of theoretical reasoning with firm grip on empirical circumstances that lead us to consider some issues that dwell the "growth economists" these days. Our study suggests a conclusion that discussions on the cycle-growth nexus are far from over, revealing us some remarkable confrontations within empirical domain.
Innovation has long been recognized as one of the key elements of economic progress, though some say that its direct relation to the concept of economic growth remains rather controversial. ...Productivity growth is the key economic indicator of innovation, nonetheless. Growth theory assumes that changes in real output are a result of technological shocks within the economy. Using ARIMA modelling techniques and Beveridge-Nelson univariate decomposition, this paper estimates the impact of technological shocks on GDP, GDP per capita and labour productivity (long-term) growth of OECDs' most developed countries. The study explores the global effects of the 'third industrial revolution' for 25 OECD countries over 1950-2013 periods. Measured impact of technological innovation on growth is significant, and it is expected to become even more significant in the future. Positive impact of technological innovation on growth and welfare is seriously risked by the high divergence and inequality arising from the Great decoupling problem.
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