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The Modelling Of Enterprise Zone Allocation In Croatia

Using zero-inflated Poison and negative binominal models to account for zero observation and binominal regression in the data, this study examines how enterprise zone patterns in Croatia vary across municipalities with differing income levels, human capital, fiscal revenues, unemployment rates, development intensity and voting profiles. The target population was enterprise zones in Croatia, and the sample used for this study approximately overlaps that population. The study included 555 municipalities in Croatia. Enterprise zones are a form of targeted economic development policy that provides special tax incentives to attract and retain companies to a few relatively poor communities rather than the entire country. This research examines the following main hypothesis: Do municipalities in Croatia adopt enterprise zones to benefit economically depressed regions?

enterprise zone, count-data modelling, probit regression, municipalities, Croatia

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