November 2011

Zagreb International Review of Economics and Business
Volume XIV, Number 2 (November 2011)

ABSTRACTS 



The Impact of Euro on Athens Stock Market Index
Apostolos Kiohos
Athanasios Koulakiotis
Anastasios Maligkris
 
Abstract: This paper examines whether the introduction of Euro in the Greek market has changed the attitude of the Athens Stock Index due time. The estimation results indicate that after the introduction of Euro, the ASE index had more asymmetric effect, while there was a decrease in the existing persistence. In addition, it was depicted that the sign of innovations is significant in the after-Euro period, showing that only the large negative shocks can cause more volatility in contrast to the pre-Euro period, and thus the risk of the ASE index’s stocks was more increased in the after-Euro period.
 
Keywords: Athens Stock Market, Impact of Euro, EGARCH, IGARCH, Asymmetries.
JEL classification: C58, G15.
 
 
Industrial Enlargement and Competitiveness Index
Art Kovačič
 
Abstract: Over the last decade Slovenia has achieved clear and positive macro-economic results that have placed it among the most successful transitions countries. The basic indicators show that it has been integrating and catching up with European Union member states at an ever increasing pace. Despite this, the challenges of a global economy-where only innovation and entrepreneurship can compete successfully, and the relative lag in the competitive capacity of our economy behind numerous other countries in the world rankings, require drastic changes to be made to Slovenia’s economic structure to adopt as much as possible to the demands of the knowledge based economy.
 
Keywords: national competitiveness, benchmarking, development strategy, industrial policy
JEL classification: 011, 024, 038, 057
 
 
The Effect of Free Trade Agreements on Bilateral Trade Flows: The Case of Cefta
Selena Begović
 
Abstract: The purpose of this paper is to argue that free trade agreements do not necessarily improve trade between member countries. The effects of such agreements depend on the historical, political and ethnic circumstances in trading partner countries and the specifics of their relations. The sample consists of panel data, which includes CEFTA member countries and their major trading partners for the period 1999-2007. Results of the gravity model suggest that trade liberalisation did not improve trade in the region for the observed period, when controlling for the other trade determinants. This finding may be a result of recent conflicts between the observed countries of the region.
 
Keywords: Gravity model, bilateral trade flows, free trade agreements, CEFTA
JEL classifications: C33, C52, F13, F15
 
 
Reducing Negative Impact of Project Changes with Risk and Change Management
Aljaž Stare
 
Abstract: Although changes have proven to be one of the crucial causes of project deviations, this topic is relatively poorly discussed in the literature. This paper presents research whose goal was to examine how changes can be prevented, and how to reduce their negative impact. Theoretical research examined risk management and change management. The developed model was verified after conducting empirical research in Slovenian enterprises. The research confirmed that risk management identifies possible changes and reduces their impact; while formal change management ensures the effective implementation of changes. The combined functioning of both areas ensures effective project execution.
 
Keywords: project, risk management, change management
JEL classification: L29 , O22, D22, D23, G32
 
 
Real Exchange Rate Misalignment and Economic Growth: An Empirical Study for the Maghreb Countries
Zouheir Abida
 
Abstract: It has long been recognized in academic and policy debates that domestic policies play an important role in explaining economic growth. The paper investigates the role of real exchange rate (RER) misalignment on long-run growth in three countries of the Maghreb countries (Tunisia, Algeria and Morocco) over the period 1980-2008. We first estimate equilibrium RER relying on the Fundamental Equilibrium Exchange Rate (FEER) approach, from which misalignment is derived. Second, we estimate a dynamic panel growth model in which among the traditional determinants of growth, our measure of misalignment is included. The results indicate that the coefficient for RER misalignment is negative, which means that a more depreciated (appreciated) RER helps (harms) long-run growth. As a consequence, an appropriate exchange rate policy would close the gap between RER and its equilibrium level.
 
Keywords: Equilibrium Real Exchange rate, Economic Growth, Misalignment, Panel Cointegration tests.
JEL Classification: C23, F31, O47
 
 
Medical Tourism Development in Croatia
Oliver Kesar
Katarina Rimac
 
Abstract: This article is primarily focused on medical tourism, one of the most interesting aspects of health tourism development, originally conceived as a marketing tool for attracting international demand for health care services. The purpose of this article is to summarize the rationale of promoting medical tourism development in developing countries like Croatia, and to assess the opportunities and constraints of such product development in present socio-economic conditions. The theoretical background and discussion presented in this article were done with reference to respective publications and web-sites. Also, authors have performed a SWOT analysis and proposed some policy recommendations for further development of medical tourism in Croatia.
 
Keywords: medical tourism, health tourism, health care markets, international tourism, Croatia
JEL classifi cation: L83, I11