To determine the efficiency of regional and local government public functions, the most used method in the empirical analysis is data envelopment analysis. This paper reviews 20 counties as part of regional government units in Croatia as well as the relationship between efficiency scores and exogenous determinants in the 2009-2016 period. The results of our analysis show that, among exogenous determinants, only the annual registered unemployed rate and annual average wage for full time jobs are statistically significant.
As of 1 July 2013, i.e. with Croatia's accession to the European Union, the number of Member States of the European Union rose to 28. The diversity of tax systems among the Member States causes interferences in cross-border activities of tax firms. That encourages transfer of income to countries with lower tax rates. The aim of this paper is to present the main points of view on the implications of the introduction of the Common Consolidated Corporate Tax Base (CCCTB) in Croatia. This paper also estimates the effects of the prospective apportionment procedure on corporate group entities in Croatia. The acceptance of the CCCTB system will make Croatia attractive to foreign investors. It will also enable foreign multinational companies to do business in Croatia, which will contribute to its economic growth.
As of 1 July 2013, i.e. with Croatia's accession to the European Union, the number of Member States of the European Union rose to 28. The diversity of tax systems among the Member States causes interferences in cross-border activities of tax firms. That encourages transfer of income to countries with lower tax rates. The aim of this paper is to present the main points of view on the implications of the introduction of the Common Consolidated Corporate Tax Base (CCCTB) in Croatia. This paper also estimates the effects of the prospective apportionment procedure on corporate group entities in Croatia. The acceptance of the CCCTB system will make Croatia attractive to foreign investors. It will also enable foreign multinational companies to do business in Croatia, which will contribute to its economic growth.
As of 1 July 2013, i.e. upon Croatian accession to the European Union, the European Union will consist of 28 member states. Diversity of tax systems among member states causes interferences in cross-border activities of tax firms. That encourages transfer of income to countries with lower tax rates. The aim of this paper is to present the main points of view on implications of the introduction of the Common Consolidates Corporate Tax Base (CCCTB) in Croatia. This paper also estimates the effects of prospective apportionment procedure on corporate group entity in Croatia.
The public sector and public governance play a crucial role in the contemporary society which takes care of social needs. Therefore, it is not surprising that good governance has often been used to explain good economic performance as well as the well-being of a society over the last decade. However, the business sector often represents a channel through which public governance affects economic performance, which has largely been neglected in the existing literature. In this context, not much is known about the role of public governance in promoting research and development (R&D) in the business sector in the EU. Therefore, this article aims to explain the interaction between the public and business sectors in a cross-national setting by investigating the relationship between different public governance practices and business R&D activity. The aim is to be achieved by applying a multiple regression analysis on a cross-sectional dataset of EU member countries. The empirical results show the following. First, they reveal that, in general, public administration in the EU is predominantly based on neo-Weberian state rather than New Public Management governance practices. Second, they reveal that public governance practices have important implications for business R&D activity. They show that impartiality, accountability and efficiency enhance business R&D activity in the EU, while closeness deteriorates it. The findings of the article are especially beneficial for contemporary governments and policymakers to establish appropriate public governance and policy practices in the future.
The public sector and public governance play a crucial role in the contemporary society which takes care of social needs. Therefore, it is not surprising that good governance has often been used to explain good economic performance as well as the well-being of a society over the last decade. However, the business sector often represents a channel through which public governance affects economic performance, which has largely been neglected in the existing literature. In this context, not much is known about the role of public governance in promoting research and development (R&D) in the business sector in the EU. Therefore, this article aims to explain the interaction between the public and business sectors in a cross-national setting by investigating the relationship between different public governance practices and business R&D activity. The aim is to be achieved by applying a multiple regression analysis on a cross-sectional dataset of EU member countries. The empirical results show the following. First, they reveal that, in general, public administration in the EU is predominantly based on neo-Weberian state rather than New Public Management governance practices. Second, they reveal that public governance practices have important implications for business R&D activity. They show that impartiality, accountability and efficiency enhance business R&D activity in the EU, while closeness deteriorates it. The findings of the article are especially beneficial for contemporary governments and policymakers to establish appropriate public governance and policy practices in the future.
The significant contribution of R&D to economic development and sustainability has been shown by various studies. Therefore, governments offer different fiscal instruments to attract R&D, especially regarding multinational entities (MNEs). One of the fiscal instruments are tax incentives for R&D. Furthermore, the EU has been working on the switch from Separate Taxation (ST) to Common Consolidated Corporate Tax Base (CCCTB) for longer than a decade, which will lead to harmonized R&D tax allowances, however without harmonizing the tax rates. Hence, this study aims at analyzing how ST and CCCTB impact the location of MNEs' R&D activities, tax burden and countries' tax revenue through a case study. The results show that, under ST, tax jurisdictions can stimulate MNEs' R&D activities by means of attractive tax allowances and lower tax rates. Especially for high-tax countries, the tax allowances represent an important tool for attracting R&D activities. However, under CCCTB, the location of R&D activities additionally depends on the Formula Apportionment (FA) factors of the tax base, where the countries cannot exert a direct influence. Hence, the reduction of tax rates remains the only tool left to Member States, which can lead to revenue loss on the whole. Furthermore, the FA of the tax base under CCCTB mitigates the impact of any dislocation of R&D to a low-tax country, which, under ST, leads to larger tax savings of MNEs and its impact on jurisdictions' tax revenue is greater.
Fiscal rules have been the centre of economic debate in European Union Member States. They indicate the direction in which policymakers aim to evolve public finances. In recent years the public finances of European Union Member States have been affected by two major changes in economic and institutional settings. These are the establishment of Economic and Monetary Union and progressive fiscal decentralisation in a significant number of European Union Member States. In order to support the fiscal decentralisation process European Union Member States need to have appropriate fiscal policy rules. They can stimulate policy coordination between different levels of government depending on their institutional coverage. The aim of this paper is to present an analysis of the fiscal rule index and fiscal rule strength index in European Union Member States, with special emphasis on Croatia. The Directorate-General for Economic and Financial Affairs methodology was used in analysing the fiscal rule index and fiscal rule strength index by type and government sectors in the period from 2003-2013 in European Union Member States. Based on our results, the fiscal rule index for Croatia, from the period 2003-2013, is continually on the rise from -1.01 in 2008 to a high 1.43 in 2013.
Fiscal rules have been the centre of economic debate in European Union Member States. They indicate the direction in which policymakers aim to evolve public finances. In recent years the public finances of European Union Member States have been affected by two major changes in economic and institutional settings. These are the establishment of Economic and Monetary Union and progressive fiscal decentralisation in a significant number of European Union Member States. In order to support the fiscal decentralisation process European Union Member States need to have appropriate fiscal policy rules. They can stimulate policy coordination between different levels of government depending on their institutional coverage. The aim of this paper is to present an analysis of the fiscal rule index and fiscal rule strength index in European Union Member States, with special emphasis on Croatia. The Directorate-General for Economic and Financial Affairs methodology was used in analysing the fiscal rule index and fiscal rule strength index by type and government sectors in the period from 2003-2013 in European Union Member States.Based on our results, the fiscal rule index for Croatia, from the period 2003-2013, is continually on the rise from -1.01 in 2008 to a high 1.43 in 2013. This work is licensed under aCreative Commons Attribution-NonCommercial 4.0 International License.
Background: In recent years' income inequality has been an economic issue. The primary instrument for redistributing income is personal income tax. However, based on economic theory income inequality concerns indicators such as wages, transfer payments, taxes, social security contributions, and geographical mobility. Objectives: The objective of this paper is to examine the impact of certain labor market indicators on personal income taxation in Federation of Bosnia and Herzegovina (FB&H). Methods/Approach: Since personal income taxation consists of a very broad definition and for the purpose of this research only, income from dependent (employment) activity is observed. The econometric analysis is conducted using error correction modeling, as well as forecast errors variance decomposition. Results: The error correction model is estimated, and the cointegrating equation indicates that monthly wage and number of employees statistically significantly positively affect personal income taxes in FB&H in the long-run. After two years, the selected labor market indicators explain a considerable part of forecasting error variance of personal income tax revenues. Conclusions: The implementation of reforms in the labor market and tax policies of the FB&H is suggested. In order to achieve necessary reforms, efficient governance and general stable political environment are required.
Offering an efficient healthcare system is one of the main focuses of economic development for every country in the world, including Croatia, in order to achieve a better quality of life and healthcare protection. As a result, there is also a higher standard of living for the citizens. The healthcare system in Croatia has undergone a number of reforms. For each of the implemented reforms, the objective was to optimize the healthcare system in line with the government's budget to achieve sustainability in the long run. Therefore, the healthcare financing system and sustainability play an important role. The objective of this paper is to evaluate and analyze the efficiency of average healthcare expenditures in twenty Croatian counties by applying the data envelopment analysis approach. The analysis was conducted for the 2010-2017 period. To assess the performance of the counties, we used three inputs and three outputs. The results revealed significant differences in the efficiency of healthcare expenditures among the Croatian counties. Therefore, the results of scale efficiency showed that, among the twenty Croatian counties, only six counties (Brod-Posavina, Koprivnica-Križevci, Lika-Senj, Međimurje, Vukovar-Srijem and Zagreb) operate at the maximum score.
Limited tax collection authority in local self-governments hampers revenue generation in rural regions with smaller populations and limited commercial activity, while the growth of the digital economy further complicates tax collection for local governments. The objective of this study is to examine the challenges encountered by both the central and local tax administrations in Indonesia when implementing consumption-based taxation, especially in light of the increasing prevalence of digital transactions. The study reveals that the shift from traditional to digital transactions is likely to result in conflicting taxing rights between central and local governments. Local governments are typically entitled to a share of taxes on certain forms of consumption, such as accommodation, food delivery, and entertainment. However, the use of digital platforms to provide these services has significantly reduced the local government's share of tax revenue. This issue is exacerbated when the central tax administration, with its competitive advantage, administers the transaction alongside the broader value-added tax object. In addition to the unclear tax-sharing arrangement, the underlying problem consists in the inadequate coverage of all digital transactions, potentially leading to revenue leakage and double non-taxation.
Given recent environmental reforms and the focus on the problem of climate change, it is necessary to evaluate whether green growth and environmental taxes can reduce CO2 emissions for countries. Even though a number of studies have analysed the ways to reduce environmental pollution, the literature lacks enough evidence for the role of green growth and environmental taxes in determining the level of carbon emissions. Therefore, the objective of the empirical analysis is to estimate the impacts on CO2 emissions of green growth and environmental taxes by including sustainable indicators for a group of 25 environmentally friendly countries from 1994 to 2018 by applying advanced panel data analysis models. By applying the novel quantile regressions on the largest amount of available data from 1994 to 2018, this article shows that the coefficients of green growth, environmental taxes, renewable energy and energy efficiency are negative at lower, medium and higher quantiles. According to the results of the quantile regression, environmental taxes, renewable energy and energy efficiency are key factors in decreasing CO2 emissions. Overall, renewable energy should be given greater priority through research supports, subsidies and government incentives while environmental taxes should be more implemented to discourage activities that promote pollution. ; University of Rijeka, Faculty of Tourism and Hospitality Management. *Grant number:ZIP-FMTU-001-11-2021
The task of every government, especially during the Covid-19 pandemic, is to provide services and goods for citizens and to maintain economic order. Therefore, the combination of legislation, the judiciary and administration is inevitable. Moreover, public administrations must transform the way they function by using more information and communication technology in order to remain responsive and efficient. This challenge was further revealed during lockdowns in individual countries, which affected their social and economic development. The solution to that challenge is the implementation of e-government in the public sector. It also increases innovation in governance processes as well as efficiency and effectiveness by offering more participative opportunities to citizens. Hence, a mature level of e-government development also arises. Nevertheless, there are significant differences among the levels of e-government development in the EU-28. The aim of this article is to assess the influence of e-government maturity on government effectiveness and efficiency in the EU-28. In order to obtain empirical results, a two-stage least square regression (2SLS) was applied. The empirical results show that e-government maturity positively and significantly contributes to enhancing government effectiveness and efficiency in the EU-28. In addition, the rule of law plays an important role in each stage regression model. Based on the empirical results, we can conclude that e-government is inevitable and should ensure the proper functioning of public administration during the Covid-19 pandemic.
The task of every government, especially during the Covid-19 pandemic, is to provide services and goods for citizens and to maintain economic order. Therefore, the combination of legislation, the judiciary and administration is inevitable. Moreover, public administrations must transform the way they function by using more information and communication technology in order to remain responsive and efficient. This challenge was further revealed during lockdowns in individual countries, which affected their social and economic development. The solution to that challenge is the implementation of e-government in the public sector. It also increases innovation in governance processes as well as efficiency and effectiveness by offering more participative opportunities to citizens. Hence, a mature level of e-government development also arises. Nevertheless, there are significant differences among the levels of e-government development in the EU-28. The aim of this article is to assess the influence of e-government maturity on government effectiveness and efficiency in the EU-28. In order to obtain empirical results, a two-stage least square regression (2SLS) was applied. The empirical results show that e-government maturity positively and significantly contributes to enhancing government effectiveness and efficiency in the EU-28. In addition, the rule of law plays an important role in each stage regression model. Based on the empirical results, we can conclude that e-government is inevitable and should ensure the proper functioning of public administration during the Covid-19 pandemic. ; Naloga vlad, zlasti v času pandemije covida-19, je zagotavljati storitve in blago za državljane ter vzdrževati gospodarski red. Pri tem je kombinacija zakonodaje, sodstva in uprave neizogibna. Poleg tega morajo javne uprave, če želijo ostati odzivne in učinkovite, prilagajati svoje delovanje in uporabljati več informacijskih in komunikacijskih tehnologij. Ta izziv se je pokazal zlasti med zaustavitvijo javnega življenja v posameznih državah, ki je vplivala na njihov družbeni in gospodarski razvoj. Rešitev za učinkovito spopadanjem s tem izzivom predstavlja uporaba e-uprave v javnem sektorju. Ta povečuje inovativnost upravljavskih procesov, pa tudi njihovo uspešnost in učinkovitost, saj državljanom ponuja več možnosti sodelovanja. S tem razvoj e-uprave doseže tudi zrelejšo raven. Kljub navedenemu pa še vedno obstajajo velike razlike med stopnjami razvoja e-uprave v EU-28. Cilj tega članka je oceniti vpliv zrelosti e-uprave na učinkovitost in uspešnost upravljanja v EU-28. Za pridobitev empiričnih rezultatov je bila uporabljena dvostopenjska regresijska analiza najmanjših kvadratov (2SLS). Empirični rezultati kažejo, da zrelost e-uprave pozitivno in pomembno prispeva k povečanju uspešnosti in učinkovitosti upravljanja v EU-28. V regresijskem modelu posamezne stopnje ima pomembno vlogo tudi načelo pravne države. Na podlagi empiričnih rezultatov lahko ugotovimo, da je e-uprava neizogibna in bi morala med pandemijo covida-19 zagotavljati pravilno delovanje javne uprave.
