engleski

Comparative Study of the Under-utilisation of Tourism and Economic Capacity in Croatia and the Recession in Western Europe

A rise in the capital coefficient is often used as a reference when indicating the level of excess capital means and equipment in the hospitality industry. As the capital coefficient is the ratio of capital stock (hotels, auto-camps etc. fixed assets), to tourism’s GDP, it can be described as an indicator that shows how much capital stock is required to produce one unit of tourism’s GDP, and it is used as a criterion for the efficiency and level of over-supply of capital stock. Its time series volatility can also measure an over or under-utilization of tourism and catering capacity at a national level as a short-run temporary variation in tourism’s economy. This paper intends to make a comparison of the capital coefficients over the tourism and catering sector in Croatia and aggregate economy in the time span 1952-2004. Throughout our paper we use a dummy variable indicating recession in the circle of Western European countries, e.g. in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Sweden, Switzerland and the United Kingdom. After forming a dynamic regression model we will test if the recession occurrence in Western Europe successfully explains the underutilization of aggregate and tourism capacity in Croatia.

incremental capital-output ratio; marginal product of capital; capital

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