Saša Drezgić’s research while affiliated with University of Rijeka and other places

In Croatia, the social security system is based on generational solidarity, i.e. payment of contributions, which is known as pay as you go (PAYG), but the balance of its functioning is permanently and significantly disturbed by long-term unfavourable demographic processes. Projections show that the worrying demographic situation will deteriorate even further and that, with low birth and fertility rates and negative natural growth, negative net migration will contribute to further depopulation. In addition, contributions directly burden labour, i.e. they increase labour costs for employers and reduce their competitiveness in the marketplace, affecting economic growth. The paper reviews empirical research on the impact of different tax structures on economic growth, the sublimated conclusion of which is that direct taxes have a negative effect on growth, while indirect taxes are neutral. The Croatian tax system, with VAT as the main factor in the tax structure, is focused on taxing consumption, but is also characterized by a high level of levies. In this paper, the authors use the vector autoregression model to analyse the relationship between economic growth and the changed tax structure of the Republic of Croatia, in which the role of indirect taxes would be more emphasized. Data in model are consist of different types of taxes, GDPpc, population growth, gross fixed capital formation, unemployment rate and cover the time period from 2004 to 2019. The authors prove that the reduction of the tax burden through direct taxes has positive economic, demographic and fiscal effects.

High-quality digital infrastructure is the basis of almost every sector of a modern and innovative economy and society. As a part of the overall competitiveness concept, digital competitiveness is a multidimensional structure that encompasses various factors of the process of digital transformation through the ability of learning and application of new technologies, technology factors that enable digital transformation, and digital readiness factors that assess the preparedness of an economy and citizens to assume digital transformation. The paper aims to propose a methodology for measuring digital competitiveness using a composite index approach including a variety of various indicators. To assess the digital competitiveness of European countries, a multi-criteria analysis was applied in a two-stage procedure integrating CRITIC and TOPSIS as weighting and aggregation methods. The sample includes thirty European countries and the research is based on thirteen indicators provided in the database Eurostat Digital Economy and Society. In addition, a ranking of sample countries according to digital competitiveness is presented. Finally, a cluster analysis was conducted to examine relations between digital competitiveness and several economic performances such as GDP pc, labour productivity and employment rates. The results indicate that Nordic countries have achieved the highest digital competitiveness, while most Eastern European countries still lag behind.

Maritime transport and ports are among the most important linkages between global economies, handling more than 90% of internationally traded goods. Economic importance of maritime transport imposes significant implications on the social and environmental performance of port regions. The paper aims to create composite indices as relevant, scientific-based tools used in comparing and monitoring various aspects of sustainability across 37 sea port regions in seven countries on the European side of the Mediterranean, covering a five-year period from 2014 to 2018. The model encompasses Eurostat and OECD annual NUTS2 level data covering economic, social and environmental dimensions of sustainability. Two important indicators of maritime transport activity, maritime transport of freight and maritime transport of passengers, are included within the group of economic indicators. To create composite indices, the multicriteria decision making (MCDM) framework was used as an integrated approach of entropy in the weighting segment, and the Preference Ranking Organization METHod for Enrichment of Evaluations (PROMETHEE) as an aggregation method. The results highlight GDP per capita and population density as indicators of the greatest relative importance when it comes to port regions sustainability. The ranking results indicate that, despite the fact that Attica is the best ranked region in terms of overall sustainability, the largest number of top rated port regions are in Italy, Spain and France.

Većina raspoloživog kapitala nalazi se u posjedu pravnih osoba, odnosno poduzeća (najčešće multinacionalnih kompanija) sklonih ulaganju u širenje vlastitog poslovanja, što ne donosi samo dodatno uvećanje profita poduzeća, već indirektno utječe i na povećanje zaposlenosti, rast gospodarstva, razvoj domaćeg financijskog tržišta te općeniti napredak države. Zato države širom svijeta aktivno utječu na formiranje povoljnog poslovnog okruženja koje će imati učinak na povećan priliv izravnih stranih ulaganja (Foreign Direct Investments – FDI). Cilj ovog rada je utvrditi utjecaj oporezivanja dobiti na privlačenje izravnih stranih ulaganja u zemljama članicama Europske unije. Statička panel analiza provedena je za razdoblje od 1998. do 2017. godine na 28 zemalja članica u cjelini, te posebno na starim članicama (EU 15) i novim članicama (EU13). Uz različite kontrolne varijable, kao nezavisna varijabla analizirane su različite stope poreza na dobit – zakonska (službena, nominalna) stopa poreza na dobit i efektivne (prosječna i granična) porezne stope u cilju ispitivanja stvarnog poreznog opterećenja trgovačkih društava i njihovog utjecaja na kretanje izravnih stranih ulaganja. Zaključeno je kako porez na dobit značajno utječe na kretanje izravnih stranih ulaganja trgovačkih društava u novim zemljama članicama Europske unije (koje karakterizira niže porezno opterećenje), ali ne kao primarni čimbenik, pri čemu se ističe društveni proizvod. U tom kontekstu najveći utjecaj ima efektivna prosječna porezna stopa.

The last global economic crisis set fiscal consolidation as one of the most relevant goals of economic policy. At the same time, efforts are necessary to increase economic growth rates, particularly by increasing quantity and quality of public investment. However, the lack of fiscal space and other impediments make these goals hard to attain. On the contrary, in many countries data show negative dynamics of quantity and quality of public investment. In terms of energy efficiency investment, trends are positive. However, the pace of investment significantly underperforms the goals set. We argue that one of the major reasons is the lack of financial innovation and project selection methodology. For this reason, projects have still been mainly financed under traditional procurement models. Surprisingly, most countries do not exploit the advantages of alternative models of financing which do not affect public debt level, significantly reduce fiscal deficits and reduce fiscal risks. This article argues that a multi-criteria approach used at the initial stages of project preparation increases the potential for project realisation and the overall quantity and quality. In order to provide empirical evidence, we use information on energy efficiency streetlighting projects and present a case of a traditional versus alternative financing models. • Highlights • a need for a systematic approach when selecting optimal financing model is a must; • a lack of financial innovation is one of the most critical impediments to a higher level of investment in revenue-generating projects common for the energy efficiency sector; • alternative models of financing enable public investment increase without harming the fiscal position; • a new methodology for selecting the most preferable model is presented; • a policy mix should take more comprehensive stance towards complexity of public investment projects.