engleski

Impact of Taxation Policies on Regional Growth in Croatia

A growing interest in regional growth has observed in the economic literature as well as in general public. Policy oriented to reducing regional disparities is also recognized by the EU. In this paper we tried to identify the factors determing regional growth differences in the Croatian economy and more specially, identify the role of tax incentives in promoting regional growth. We tested and confirmed the hypothesis that local taxes don't present obstacle for economic development of Croatian counties. Differencies in economic dinamics of Croatian counties can be explained more effectively by other factors, such as demographic and educational characteristics, structural factors and the development of the infrastructure. These variables should be in the focus of the policy makers instead of broadening tax system incentives.

taxes; regional growth; economic structure

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