Pregled bibliografske jedinice broj: 1149704
The assessment of twin divergence in Croatia: The impact of trade deficit on the budget deficit
The assessment of twin divergence in Croatia: The impact of trade deficit on the budget deficit // Proceedings of the 16 th International Symposium on Operational Research in Slovenia, SOR'21 in Slovenia, September 22 - 24, 2021 / Drobne, S. ; Zadnik Stirn, L. ; Kljajić Borštnar, M. ; Povh, J. ; Žerovnik, J. (ur.).
Ljubljana: Slovensko društvo informatika, 2021. str. 501-506 (predavanje, međunarodna recenzija, cjeloviti rad (in extenso), znanstveni)
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Naslov
The assessment of twin divergence in Croatia: The
impact of trade deficit on the budget deficit
Autori
Banić, Frane ; Palić, Irena
Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni
Izvornik
Proceedings of the 16 th International Symposium on Operational Research in Slovenia, SOR'21 in Slovenia, September 22 - 24, 2021
/ Drobne, S. ; Zadnik Stirn, L. ; Kljajić Borštnar, M. ; Povh, J. ; Žerovnik, J. - Ljubljana : Slovensko društvo informatika, 2021, 501-506
ISBN
978-961-6165-57-0
Skup
16th International Symposium on Operations Research in Slovenia (SOR '21)
Mjesto i datum
Bled, Slovenija, 22.09.2021. - 24.09.2021
Vrsta sudjelovanja
Predavanje
Vrsta recenzije
Međunarodna recenzija
Ključne riječi
twin deficit, indirect taxes, Johansen's cointegration approach, fiscal policy, twin divergence, trade balance
Sažetak
This paper empirically assesses the twin divergence hypothesis in Croatia by estimating the impact of trade deficit on the budget deficit in Croatia from the first quarter of 2004 to the fourth quarter of 2019 using Johansen’s cointegration approach. The trace and maximum eigenvalue tests point to the existence of one cointegrating relation between two deficits. The increase in the trade deficit results in a reduction in the budget deficit, pointing to the important role of indirect tax revenues in the Croatian tax system. In line with the results of empirical research, restructuring of the Croatian tax system is recommended. Taking into consideration the twin divergence as well as the importance of the export competitiveness for the economic growth, lower dependency of revenues on consumption and imports is suggested.
Izvorni jezik
Engleski
Znanstvena područja
Ekonomija
