Conference Issue 2014

Investigating the Effectiveness of UK Energy Policy in Promoting Renewable Investments and Reducing Carbon Emissions
Abdo Hafez

Abstract: The UK developed an energy policy which focused on providing for energy security and cutting carbon emissions. A number of obstacles confronted this policy and slowed down investments in renewable energies. This research aims to investigate the effects of UK energy policy on deriving investments in renewable technologies and reducing carbon emissions, and hence on energy security. The study will try to answer the following question: How successful the UK energy policy has been in promoting investments in renewable energy options and in reducing carbon emissions. To answer the above question and achieve the above stipulated research objectives data was collected by means of content analysis from governmental publications and statistics. Our findings suggest that in order for the UK to achieve its policy objectives it needs to stabilise its energy policy and to reduce uncertainties surrounding investments in renewable energies.

Keywords: Carbon emissions, policy, renewables, tax, UK
JEL Classification: Q4

Fiscal Policy Stance Reaction to the Financial/Economic Crisis in the EMU: The Case of Slovenia
Jernej Mencinger
Aleksander Aristovnik

Abstract: The article evaluates the current economic crisis’ impact on changes in the adoption of fiscal policy measures for 16 euro-area countries in the 2004–2012 period and compares those changes with fiscal policy measures introduced in Slovenia. In general, the results suggest that the adopted fiscal policy measures in most euro-area countries were more expansionary in the period before the current economic crisis started. The evaluation of the fiscal stance in Slovenia suggests expansionary and pro- cyclical fiscal behaviour during the 2005–2008 period, whereas the response of the fiscal authorities in Slovenia in 2011 and 2012 due to fiscal consolidation was more restrictive and pro-cyclical. Finally, we emphasize that inconsistent fiscal policy without structural reforms also being carried out may lead to a further deterioration of the fiscal position and macroeconomic situation of euro-area countries, including during a period of cyclical recovery.

Keywords: fiscal stance, economic crisis, cyclical adjusted balance, output gap, EMU, Slovenia
JEL Classification: E62, H60

Modelling Croatian Export Dynamics Using Global Macroeconometric Model
Saša Jakšić
Berislav Žmuk

Abstract: Five years following the occurrence of the global economic and financial crisis, Croatia is one of the few countries in the region whose export has still not recovered to the pre-crisis level. In order to properly account for international linkages and possible crisis spillover effects, a Global Vector AutoRegressive (GVAR) model is defined. The GVAR model is a consistent global macroeconometric model which enables modelling interactions between Croatia and a set of Central and Southeast European (CSEE) countries. The empirical analysis reveals that the domestic variables are the main factor explaining Croatian export dynamics in the short run. However, in the long run, the main determinants of Croatian export are the US and German real exchange rates. These findings provide evidence in favour of low competitiveness of Croatian export.

Keywords: Global VAR, GFEVD, international trade, export, Croatia
JEL Classification: F10, F17, C30

The Role of ICT in Education: a Longitudinal Study Based on Tourism Students Perceptions
Daniela Garbin Praničević
Maja Šerić

Abstract: The purpose of the paper is focused on information and communication technology (ICT) and its incomprehensible supporting role in the education process. In the empirical part of the paper are presented the results of five - years research conducted among the students of the University of Split/ Faculty of Economics. The research is based on tourism students’ perceptions of certain factors which influence the process of e-learning. In that context, the authors examine the relationship between perceived ease of use and IT literacy on satisfaction as a predictor of behavioral attitude as well as the relationship between perceived usefulness and the achieved student performance expressed in values of final grade. Additionally, the authors also identified the possible differences between professional and undergraduate students regarding the above mentioned relationships. In the conclusion section, the empirical results are interpreted in the context of current trends in education, especially tourism studies education.

Keywords: Information and communication technology, education process, study outputs, tourism and hospitality
JEL Classification: I23, O14

Economic Growth and Tourism Demand in Croatia: the Cyclical Component Analysis
Tonći Svilokos
Meri Šuman Tolić
Ivana Pavlić

Abstract: Development of tourism has often been considered as a positive contributor to economic growth. The impact of tourism to a country economy is  multifaceted. As such, tourism may represent an excellent tool for development. This paper presents preliminary findings using descriptive statistics and spectral analysis. Therefore, the main purpose of this research is to examine the relationship between the cyclical components of Croatian economy for periods 1972-2013. Using spectral analysis the authors compare the cyclical fluctuations of gross domestic product (GDP) and total tourist arrivals. VAR analysis is also applied in order to detect the relationship between analysed cyclical components in Croatia.

Keywords: tourist arrivals, economic growth, cycle components, VAR, Croatia
JEL Classification: E42, L83, E27, O40, C22

Relations Between Planning Systems and Employee Reward Schemes in Polish Enterprises
Joanna Dyczkowska
Tomasz Dyczkowski

Abstract: A purpose of this paper is to detect relations between planning systems and rewarding schemes in micro-, small-, medium- and large-sized companies. The conducted analysis is based on selected data from a research project focusing on planning, control and communication practices developed by enterprises operating in Poland. The paper reflects information and opinions included in 397 research forms. The empirical results provided evidence on positive and statistically relevant relationship between character of a goal-setting process and reward strategies. It seems that participative as well as formalized planning, where employees take part in setting objectives or obtain plans with defined goals induces performance-based reward strategies, which are reflected in merit pays or bonuses contingent on individual or corporate performance. Likewise also managerial feedback affects in a positive manner reward strategy. The study suggests that there is statistically relevant difference in reward strategies considering sector affiliation.

Keywords: goal-setting process, managerial feedback, performance-based pay, reward strategies
JEL Classification: L21, M12, M52

(In)efficiency of the Sugar Production in European Union - a Microeconomic Approach
Tomislav Herceg

Abstract: Sugar production in the world amounted to € 53.5 Bill. in 2012. It can be produced using sugar cane in tropical and subtropical climate belt or sugar beet in moderate climate. In this paper the input allocation efficiency is analysed. First part of the efficiency analysis is the microeconomic analysis of transformation of two inputs (cane and beet) into sugar. It is shown that there is no microeconomic approval for sugar production from sugar beet. Further analysis has shown that vast areas of arable land in EU could be reallocated to more profitable cultures but it would then cause price shocks on the other agricultural markets. Finally, it is shown that Croatian farmers do not have to raise revenues per hectare by switching form sugar beet to other cultures, but only to improve low productivity in its production, since the yields are below the EU average by 24%.

Keywords: Perfect substitutes, agriculture, sugar beet, sugar cane, CES production function
JEL Classification: D240