Conference issue 2016

Zagreb International Review of Economics and Business

 

Special Conference Issue 2016
8th International Conference:
An Enterprise Odyssey: Saving the Sinking Ship Through Human Capital
Zagreb, Croatia, June 8 - 11, 2016

 
Guest Editors:
Lovorka Galetić
Božidar Jaković
Ivana Načinović Braje


ABSTRACTS

General Equilibrium Effects of Lower Labor Tax Burden in Croatia
Ozana Nadoveza
Tomislav Sekur
Marija Beg

Abstract: This paper examines the effects of lower labor tax burden in Croatia by using Computable general equilibrium (CGE) model. It is a 5-sector (households, firms, government, investors and foreigners) model and economy is disaggregated on three highly aggregated sectors. One of the major advantages of CGE modeling is the evaluation of the overall effects of policy changes, shocks and reforms in the economy. We do this by lowering taxes on labor and simulating changes of all endogenous variables in the model simultaneously. Lastly, we provide sensitivity analysis results. Our results suggest that it is possible to encourage domestic production by reducing taxes on labor, but the potential effects on unemployment should be revised as to get more accurate estimates.

Keywords: CGE; small open economy; Croatia; taxes on labor; general equilibrium effects

JEL Classification: C63, C68, H20


Interpreting Typical Profile of Transition Leaders – Case Croatia
Jasminka Samardžija

Abstract: The main goal of this empirical research was to define those crucial leadership characteristics and behaviours of experienced individuals that confirmed them as leaders in the Croatian transition economy, based on success of their entrepreneurial or social affirmations. The basic research question was: What is the empirical base for classifying leaders into homogeneous groups? Results of the general characteristics cluster analysis singled out three clusters Moderates, Internalists and Globalists. Inductive approach and supporting intermediate cluster analysis based on subjective dimension “career development expectations” aligned leaders from the sample in two homogenous groups: Leaders who seek self-actualisation and Leaders who seek for self-affirmation. Three clusters, Classical capitalists – materialists, Liberal capitalists – idealists and Capitalists non materialists were derived based on the confirmation of the personal success.

Keywords: Leadership characteristics; transition economy; career expectation; confirmation of success; transition leader profile

JEL Classification: M12
 

Empirical Evidence of Capital Mobility in the EU New Member States
Ines Kersan Škabić

Abstract: This research is focused on the analysis of capital mobility indicators in the EU new member states as capital market union is one of the newest initiative in the EU. We found the most integrated countries are Hungary, the Czech R., Croatia and Estonia. Econometric analysis emphasized the main determinants of capital account openness and of FDI inward stock. The analysis indicates that the level of development, intra-EU trade and FDI inward stock have a positive impact on capital account openness (mobility), while inflation has a negative influence. The GDP per capita, intra- EU trade and capital account openness have positive impact on FDI inward stock while inflation and gross fixed capital formation have negative influence. Unexpectedly, fiscal variables and interest rates do not have a significant impact on capital openness. The results show that there is room for improvement in all countries that would enable more favorable access to capital.

Keywords: capital mobility; capital market union; EU; FDI

JEL Classification: F21, F43
 

Employment, Capital and Seasonality in Selected Mediterranean Countries
Alka Obadić
Lorena Pehar

Abstract: The paper examines the influence of tourism industry on GDP, employment and capital investments in selected Mediterranean countries (Croatia, France, Greece, Italy and Spain). It points out important contribution which tourism has on economic activity and capital investment of selected economies and labour market. The analysis highlights the importance of tourism strength in generating employment. It synthesizes data on tourism employment and employment according to educational level. The results show that the quality of human capital is increasing but at the same time indicating gender discrimination in tourism labour market. Despite women being the majority of higher education degree holders in tourism, men hold upper-management and decision-making positions more often than women do. Lastly the paper indicates strong contribution of tourism sector in GDP and total employment in selected countries showing strong problem of seasonality.

Keywords: tourism impact; tourism contribution; educational level; seasonal employment

JEL Classification: J40, J70, Z30
 

When Employers Betray: A Study of Psychological Contract Breach Among Croatian Employees
Zvonimir Galić
Maša Tonković Grabovac
Irena Gotvald
Željko Jerneić

Abstract: In this paper we report the results of a study exploring psychological contract breach (PCB) in a heterogeneous sample of Croatian employees (N=363). In addition to reporting PCB, the participants informed us about their basic demographic characteristics, job attitudes (job satisfaction and organizational commitment) and reported three aspects of their job performance (in-role performance, organizational citizenship behavior, counterproductive work behavior). Our analyses showed that PCB experience depended on participants’ characteristics, and, more importantly, was negatively related to job attitudes and job performance. Thus, the detrimental effect of PCB reported in the organizational behavior literature was replicated among Croatian employees.

Keywords: organizational behavior; psychological contract; psychological contract breach; job attitudes; job performance

JEL Classification: M12, D23


Boundaryless Career and Career Outcomes: The Mediating Role of Individual Career Management Behaviours
Irene Nikandrou
Eleanna Galanaki

Abstract: The main objective of this paper is to study individuals’ attitude towards mobility both psychological and physical and the behavioural paths that people may use to experience career success. In a structural equation model, we consider boundaryless career attitudes and the mediating role of career management behaviours to career outcomes. Psychological mobility appears to be a better predictor of career satisfaction and career advancement than physical mobility. All career strategies have a positive effect on career advancement, except for extended work involvement. Relationships oriented career strategies are not linked with career satisfaction. Physically mobile people adopt to a lesser extent relationship- oriented career strategies. Our results showed that people with a psychological mobility attitude are more likely to achieve career satisfaction through remaining flexible in their career. This knowledge is very important for practitioners and managers working with psychologically mobile personnel, as it underlines the need for employers to provide opportunities for training, skill development and challenging work. The study adds to the existing literature in that it provides empirical evidence regarding the career behavioural paths individuals with a boundaryless career attitude may use when they expect to advance their careers. Our findings help us understand better the psychological mobility attitude which has been examined less in the literature.

Keywords: Career Attitudes; Career Strategies; Career Satisfaction; Career Success; Boundaryless Career

JEL Classification: M, M00