Purpose: Economic crises introduce structural disturbances that disrupt established economic balances within industrial systems, generating diverse responses across countries and sectors. This study examines how crisis conditions affect production–export dynamics in the automotive industry by comparing Türkiye and selected European Union countries over the 2014–2023 period. Methodology: Using balanced panel data, the empirical relationship between production volume and export turnover is analyzed using fixed- and random-effects models. The Hausman test indicates that the fixed-effects specification is most appropriate, suggesting that country‑specific characteristics play a significant role in shaping production dynamics. Results: The findings reveal that, while production–export linkages remain statistically significant across countries, the magnitude and persistence of crisis impact vary depending on national production scale, institutional capacity, and structural conditions. The results further indicate that countries with higher production and export volumes experience stronger fluctuations during crisis periods, whereas countries with smaller production bases tend to display more moderate adjustments. Conclusion: The study provides comparative empirical evidence on how national automotive systems respond to systemic economic disruptions and highlights the importance of structural differences in shaping crisis outcomes across countries.
Purpose: The primary aim of this paper is to investigate the effectiveness of the interest rate transmission channel in the Turkish economy for different exchange rate regimes. Methodology: In this study, the TVAR model is estimated covering the period from 2002:1 to 2023:12. Furthermore, impulse response functions obtained from the linear VAR model are also included for comparison. The endogenous variables vector consists of the short-term interest rate, the nominal exchange rate, industrial production, and consumer prices, whereas the annual percentage change in the nominal exchange rate is used as the threshold factor. Results: Based on empirical findings, 12.21% is calculated as the optimal threshold value. Thus, periods of higher exchange rates are defined as periods in which the nominal exchange rate increases at or above this value. The empirical results from the threshold VAR model, the interest rate transmission channel is only effective for the Turkish economy in the lower exchange rate regime. Conclusion: The study concludes that, to increase the efficiency of the interest rate channel, the central bank should also consider the exchange rate markets.
Purpose: This research, conducted on a sample of Croatian manufacturing companies, investigates whether windfall profits and their tax regulation in 2022 triggered earnings management. Methodology: This research uses a company-level difference-in-differences design within the FE panel model for the period 2021 - 2023. Two interaction variables are designed to capture broader and direct effects of expected political costs. The research model also includes controls for company-level variables to capture the other motives of earnings management. Results: The occurrence of windfall profits in 2022 did not cause systematic downward earnings management. However, windfall profits in 2022 intensified negative earnings management in the segment of companies that had only negative discretionary accruals. The interaction variable that captures only those companies that were subject to windfall tax regulation in Croatia is negative and statistically significant. This finding confirms that actual exposure to windfall profit regulation is a more pronounced motive for downward earnings management than the mere existence of windfall profits. The control variables exhibit signs that are consistent with theoretical assumptions and previous research. Conclusion: Research on a sample of Croatian manufacturing companies conditionally confirmed the political cost hypothesis, i.e., only for the companies facing clear and pronounced political costs. However, the observed earnings management practices were not caused only by windfall profits tax regulation but can be linked to the company’s indebtedness, profitability, and general level of taxation.
Purpose: The paper deals with the impact of bank loans to corporations and households on gross value added (GVA) in Croatia. The research covers the period from the second quarter of 2016 to the fourth quarter of 2024. The aim of the research is to determine the significance, direction, and strength of the relationship between lending to various economic sectors and households and the development of GVA. Methodology: This research uses the ARIMAX (Autoregressive Integrated Moving Average with Exogenous Variables) model, which enables quantitative analysis of time series with the simultaneous inclusion of exogenous variables that can affect the dependent variable. Results: The results show that loans to the manufacturing sector and the accommodation and food sector have the strongest positive impact on GVA, while the trade sector has the largest negative impact. Loans to households have a weaker impact, with housing loans having a positive impact and cash loans having a negative impact on GVA. Conclusion: The results support the idea that the structural orientation of bank lending policies can have an important impact on economic growth, not only through the volume but also through the allocation. This research provides a basis for the implementation of policies aimed at lending to sectors with high growth potential, while controlling consumer debt. This can support long-term sustainable and structurally sound economic growth. Further research can focus on the components of sectoral GVA to see the financial effects on real values of sectoral productivity growth and eliminate the effects of net prices on GVA growth.
Purpose: Economic crises introduce structural disturbances that disrupt established economic balances within industrial systems, generating diverse responses across countries and sectors. This study examines how crisis conditions affect production-export dynamics in the automotive industry by comparing T & uuml;rkiye and selected European Union countries over the 2014-2023 period. Methodology: Using balanced panel data, the empirical relationship between production volume and export turnover is analyzed using fixed-and random-effects models. The Hausman test indicates that the fixed-effects specification is most appropriate, suggesting that countryspecific characteristics play a signifi-cant role in shaping production dynamics. Results: The findings reveal that, while production-export linkages remain statistically significant across countries, the magnitude and persistence of crisis impact vary depending on national production scale, institutional capacity, and structural conditions. The results further indicate that countries with higher production and export volumes experience stronger fluctuations during crisis periods, whereas countries with smaller production bases tend to display more moderate adjustments. Conclusion: The study provides comparative empirical evidence on how national automotive systems respond to systemic economic disruptions and highlights the importance of structural differences in shaping crisis outcomes across countries.
Purpose: The purpose of this study is to research the key factors that influence diasporic future travel intentions to (re)visit the motherland. The paper deals with the Croatian diaspora residing in Canada, as a case study. Methodology: The data were collected through an online survey. The chi-squared test (with Fisher’s exact test) was used for data analysis. Results: The findings indicate that the characteristics of the Croatian Canadian diaspora do not significantly influence future travel intentions. The motives that play significant roles in determining future travel plans share an emotional dimension and are strongly linked to identity and family. An increased intention to visit the homeland is associated with a more positive perception of most social and tourism attributes. The findings indicate that there is a significant relation between satisfaction with social security and safety, intangible cultural heritage, and the plan to visit Croatia. Conclusion: The study contributes to the literature on diasporic travel behavior and enables tourism policymakers to improve their marketing efforts and attract this market niche, which travels throughout the year.
Purpose: The primary purpose of this study is to explore the role of team trust in shaping team effectiveness among undergraduate students engaged in collaborative academic projects. Specifically, the study examines how trust within student teams affects their overall satisfaction with the group experience, their sense of cohesion, and ultimately, the quality and success of their group outcomes. Methodology: The study was conducted within the Organization and Management course, a core subject in the Economics of Entrepreneurship study program. A total of 89 students were divided into 26 teams, each tasked with analyzing a real-world organization and proposing an improved organizational structure. Results: The analysis revealed a significant positive relationship between team trust and both team satisfaction and team cohesion. In other words, students who reported higher levels of trust in their team-mates were also more likely to feel satisfied with the group experience and perceive their teams as cohesive and well-functioning. Furthermore, both team satisfaction and team cohesion were found to be positively linked to team effectiveness, defined as the quality and success of the group’s final output. Conclusion: The study highlights the central importance of trust in building effective student teams and reinforces findings from organizational behavior literature within a real academic setting. When trust is present, team members are more likely to feel engaged, supported, and motivated, which leads to greater collaboration, smoother communication, and ultimately better performance. These insights have practical implications for both educators and managers.
Purpose: This paper aims to investigate the influence of perceived threat/injustice against Croatia and media exposure to negative content on consumer animosity in Bosnia and Herzegovina, which in turn impacts the intention to boycott/purchase products from Croatia in the context of cross-border markets. Methodology: Primary data are collected using a cross-sectional survey, and an integrated model incorporating perceived threat/injustice and media exposure to negative content, consumer animosity, and boycott and purchase intentions is validated. CFA is used to test the measurement model, whereas covariance based SEM is employed to test the relationships. Moderation by pragmatic cross-border mechanisms is tested using factor score regression with robust standard errors. Results: Perceived threat/injustice and media exposure to negative content are antecedents of consumer animosity. Consumer animosity has a significant positive impact on boycott intention and a negative impact on purchase intention. Cross-border market availability, and travel frequency and stay intensity positively affect purchase intention. Cross-border market availability acts as a moderator that amplifies the negative impact of consumer animosity on purchase intention. The moderating effect of travel frequency and stay intensity, and perceived reciprocal cross-border consumption is not significant. Conclusion: Structural market exposure has positive effects on purchase intentions, and at the same time, it can have negative consequences for affective resistance in the form of animosity. Therefore, there is a need to develop more nuanced theories of consumer behavior in politically sensitive cross-border settings.
Purpose: Entrepreneurship is a key driver of economic growth and development. This paper examines the interdependence between economic development, innovation, and the growth of entrepreneurial ecosystems in Scandinavian and Western Balkan countries for the year 2024. Methodology: The study employs standard statistical methods, including correlation analysis, simple and multiple linear regression, followed by a panel data analysis (Fixed and Random Effects models) with a Hausman specification test to validate the robustness of the findings. Results: Results show that both economic development and innovation positively influence entrepreneurial ecosystems in the cross-sectional analysis. However, panel data analysis indicates that innovation (GII) remains a statistically significant predictor over time, while the effect of GDP per capita becomes less pronounced when innovation is accounted for, suggesting that the relative influence of economic development may be captured through innovation channels in this specific sample. The Random Effects model was validated as the appropriate specification by the Hausman test. Conclusion: The findings suggest that while economic growth and innovation are jointly linked to ecosystem development, innovation potential shows a more robust statistical association in the observed period. When countries are observed over time, these results should be treated as exploratory, given the specific regional focus and sample size. Policies that strengthen innovation capacity and economic development can effectively foster entrepreneurship, particularly in emerging economies.
Purpose: Vietnam's rapid population aging raises pressing questions about household readiness for retirement. This study investigates the extent and sources of rural-urban differences in retirement preparedness, focusing on both behavioral and resource-based dimensions. Methodology: Using nationally representative data, we analyze two indicators of preparedness: a retirement-planning dedication index and the logarithm of financial assets. Sequential regression models and Blinder-Oaxaca decompositions are employed to separate rural-urban gaps into endowment and coefficient components. Robustness checks include ordered-logit models for planning and an inverse hyperbolic sine wealth-to-income measure for assets. Results: Urban households hold more financial assets in unconditional comparisons, but this advantage is fully explained by endowment differences and disappears once controls are included. In contrast, rural households exhibit higher planning dedication after accounting for covariates. Decomposition results attribute this rural planning premium primarily to coefficient and interaction effects, suggesting stronger behavioral returns to similar traits in rural settings. Conclusion: Asset disparities largely reflect compositional differences, while planning gaps stem from behavioral factors. These findings highlight the need for complementary policies that enhance both endowments and behavioral capacities to strengthen retirement preparedness across regions.
Purpose: Entrepreneurial awareness and spirit are necessary for shaping and using entrepreneurial capacities in every national economy. An encouraging climate for the development of entrepreneurial qualities should be present in all phases of the upbringing and education of young people, where teachers play a key role. The aim of the work is to investigate entrepreneurial awareness and spirit of teachers in Croatia. Methodology: The research was conducted on a sample of 540 teachers (from primary, secondary, and higher education institutions) in Croatia. The methodological framework is derived from the Global Entrepreneurship Monitor (GEM) research, from which entrepreneurial indicators reflecting entrepreneurial awareness and spirit as key drivers of entrepreneurial endeavors and social progress have been extracted. Results: The research results indicate the potential and confirm the need for the introduction of entrepreneurial education at all levels of education in Croatia. Conclusion: The main scientific contribution of the work lies in the analysis of contextual and individual GEM indicators of entrepreneurial activity through the prism of teaching staff as the bearers of entrepreneurial education necessary for the development of entrepreneurial spirit in the wider social community, and a conceptual model based on correlations between formal entrepreneurial education, entrepreneurial awareness, and the spirit of teachers in Croatia. Research limitations and guidelines for future research are also outlined in the paper.
Purpose: This study examines the relationship between carbon dioxide (CO2) emissions and socioeconomic drivers, including human development (HD), education, financial development (FD), and household consumption for the BRICS-T countries from 2001 to 2022. Methodology: The study discusses both short-and long-run dynamics while accounting for cross-sectional dependency and heterogeneity across countries by using the panel autoregressive distributed lag (ARDL) model. Data sources include the United Nations and the World Bank hosted databases. Expected years of schooling (EYS) are used as a proxy for educational attainment. Results: The results indicate significant heterogeneity across the BRICS-T countries. The longrun findings also point to the fact that higher HDI and education levels reduce CO2 emissions, which shows that sustainable governance and environmental awareness are highly essential for carbon reduction. However, FD has a dual effect, promoting growth as well as carbon-intensive activities. The hypothesis of the environmental Kuznets curve is supported by the findings which indicate that as household consumption structures evolve toward less carbon-intensive activities (reflecting development), there is an associated adjustment toward the long-run equilibrium. Conclusion: The findings reveal that correction mechanisms are significant for Brazil, India, South Africa, and T & uuml;rkiye. The study makes a significant contribution to the literature by offering a sophisticated understanding of the socioeconomic factors influencing CO2 emissions, emphasizing policy directions geared toward sustainable development. The conclusions of this study would be embedded in strategies for striking an appropriate balance between economic growth and environmental sustainability in emerging economies.
Purpose: This study examines the relationship between carbon dioxide (CO2) emissions and socioeconomic drivers, including human development (HD), education, financial development (FD), and household consumption for the BRICS-T countries from 2001 to 2022. Methodology: The study discusses both short- and long-run dynamics while accounting for cross-sectional dependency and heterogeneity across countries by using the panel autoregressive distributed lag (ARDL) model. Data sources include the United Nations and the World Bank hosted databases. Expected years of schooling (EYS) are used as a proxy for educational attainment. Results: The results indicate significant heterogeneity across the BRICS-T countries. The long‑run findings also point to the fact that higher HDI and education levels reduce CO₂ emissions, which shows that sustainable governance and environmental awareness are highly essential for carbon reduction. However, FD has a dual effect, promoting growth as well as carbon-intensive activities. The hypothesis of the environmental Kuznets curve is supported by the findings which indicate that as household consumption structures evolve toward less carbon-intensive activities (reflecting development), there is an associated adjustment toward the long-run equilibrium. Conclusion: The findings reveal that correction mechanisms are significant for Brazil, India, South Africa, and Türkiye. The study makes a significant contribution to the literature by offering a sophisticated understanding of the socioeconomic factors influencing CO₂ emissions, emphasizing policy directions geared toward sustainable development. The conclusions of this study would be embedded in strategies for striking an appropriate balance between economic growth and environmental sustainability in emerging economies.
Purpose: The primary purpose of this study is to explore the role of team trust in shaping team effectiveness among undergraduate students engaged in collaborative academic projects. Specifically, the study examines how trust within student teams affects their overall satisfaction with the group experience, their sense of cohesion, and ultimately, the quality and success of their group outcomes. Methodology: The study was conducted within the Organization and Management course, a core subject in the Economics of Entrepreneurship study program. A total of 89 students were divided into 26 teams, each tasked with analyzing a real-world organization and proposing an improved organizational structure. Results: The analysis revealed a significant positive relationship between team trust and both team satisfaction and team cohesion. In other words, students who reported higher levels of trust in their teammates were also more likely to feel satisfied with the group experience and perceive their teams as cohesive and well-functioning. Furthermore, both team satisfaction and team cohesion were found to be positively linked to team effectiveness, defined as the quality and success of the group’s final output. Conclusion: The study highlights the central importance of trust in building effective student teams and reinforces findings from organizational behavior literature within a real academic setting. When trust is present, team members are more likely to feel engaged, supported, and motivated, which leads to greater collaboration, smoother communication, and ultimately better performance. These insights have practical implications for both educators and managers.
Purpose: Investor compensation schemes (ICSs) provide a safety net for retail investors when investment firms fail. However, the optimal level of ex-ante funding remains largely undefined. This paper proposes a quantitative framework to calibrate target fund size, based on operational risk logic. Methodology: The study applies a Monte Carlo model incorporating firm-level exposure data, supervisory risk classifications (SREP), and stochastic loss distribution (Beta-distributed loss given default). The simulation estimates expected ICS liabilities across 100,000 simulations, capturing low-frequency, high-severity loss patterns. Results: The model confirms a highly skewed distribution of losses. Based on data from the Croatian market, while most simulations result in no payout, the 99th percentile loss reaches EUR 18.7 million, with a maximum payout exceeding EUR 96 million. The results validate the use of risk-sensitive approaches over fixed-percentage benchmarks and highlight the importance of confidence intervals in reserve planning. Conclusion: This paper contributes a novel, adaptable methodology to size ICS funds based on probabilistic modelling. It supports regulators in transitioning from static to evidence-based reserve targets. Future refinements could involve dynamic monitoring, enhanced estimation of loss given default, and integration of SREP scores into contribution mechanisms.
Purpose : This paper aims to investigate the influence of perceived threat/injustice against Croatia and media exposure to negative content on consumer animosity in Bosnia and Herzegovina, which in turn impacts the intention to boycott/purchase products from Croatia in the context of cross-border markets. Methodology : Primary data are collected using a cross-sectional survey, and an integrated model incorporating perceived threat/injustice and media exposure to negative content, consumer animosity, and boycott and purchase intentions is validated. CFA is used to test the measurement model, whereas covariance-based SEM is employed to test the relationships. Moderation by pragmatic cross-border mechanisms is tested using factor score regression with robust standard errors. Results : Perceived threat/injustice and media exposure to negative content are antecedents of consumer animosity. Consumer animosity has a significant positive impact on boycott intention and a negative impact on purchase intention. Cross-border market availability, and travel frequency and stay intensity positively affect purchase intention. Cross-border market availability acts as a moderator that amplifies the negative impact of consumer animosity on purchase intention. The moderating effect of travel frequency and stay intensity, and perceived reciprocal cross‑border consumption is not significant. Conclusion: Structural market exposure has positive effects on purchase intentions, and at the same time, it can have negative consequences for affective resistance in the form of animosity. Therefore, there is a need to develop more nuanced theories of consumer behavior in politically sensitive cross-border settings.
Purpose: This paper explores the relationship between self-disclosure, self-esteem, and exposure to body positive content among Instagram users following influencers. It aims to examine evolving beauty standards and emphasises the impact of social perception on individual self-esteem and identity formation. It considers the emergence of the #body positivity movement as a reaction to unrealistic beauty ideals propagated on social media and stresses its role in promoting inclusivity. Methodology: A structured questionnaire was used to collect data from 218 Instagram users. The study used Partial Least Squares Structural Equation Modelling (PLS-SEM) to analyse the data and assess the relationships between the variables. Results: The results show that the constructs Polarity and Intent have a significant and positive impact on Self-esteem. Self-esteem has a significant and positive relationship with body-positive content. Conclusion: This research underscores the importance of body-positive content on social media in challenging traditional beauty standards and promoting inclusivity. Positive self-disclosure emerges as a critical factor in boosting self-esteem and advocating body-positive narratives. The findings suggest that self-esteem is positively influenced when individuals disclose in a positive, intentional, and authentic manner, but too much disclosure or overly personal sharing may harm self-esteem. The study offers valuable insights for influencers, marketers, and researchers into fostering healthier self-perception through social media. Limitations are acknowledged, and recommendations for future research are provided.
Purpose: The purpose of this study is to research the key factors that influence diasporic future travel intentions to (re)visit the motherland. The paper deals with the Croatian diaspora residing in Canada, as a case study. Methodology: The data were collected through an online survey. The chi-squared test (with Fisher’s exact test) was used for data analysis. Results: The findings indicate that the characteristics of the Croatian Canadian diaspora do not significantly influence future travel intentions. The motives that play significant roles in determining future travel plans share an emotional dimension and are strongly linked to identity and family. An increased intention to visit the homeland is associated with a more positive perception of most social and tourism attributes. The findings indicate that there is a significant relation between satisfaction with social security and safety, intangible cultural heritage, and the plan to visit Croatia. Conclusion: The study contributes to the literature on diasporic travel behavior and enables tourism policymakers to improve their marketing efforts and attract this market niche, which travels throughout the year.
Purpose: The position of women and their participation in political life are among the key issues in global gender equality debates. This paper examines the relationship between female representation in local politics and budget credibility in Slovenia and Croatia, addressing whether greater female involvement enhances budget transparency and accountability at the local level. Methodology: The share of female council members is expressed as the percentage of all councillors, while the presence of a female mayor is represented by a dummy variable equal to one if the mayor is female, and zero otherwise. Budget credibility is assessed by budget deviations, calculated as the absolute difference between planned and actual total expenditures divided by planned total expenditures. Cluster analysis was conducted for all 212 Slovenian urban municipalities and municipalities and 556 Croatian cities and municipalities for the year 2023. Results: The analysis reveals a negative relationship between the share of female councillors and total expenditure deviations. Local governments with a greater proportion of women in representative bodies tend to have higher budget credibility, indicating improved budget credibility associated with greater female representation. Conclusion: Enhancing female representation in local councils promotes higher budget credibility, offering important policy implications for gender equality and fiscal governance in Slovenia and Croatia. These findings underscore the value of women’s political participation in strengthening local financial management.
Purpose: This study analyses the impact of public expenditures on economic growth within the framework of the Armey curve. The Armey curve posits an inverted U-shaped relationship between government size and growth, implying that public spending promotes economic activity up to an optimal point, beyond which its marginal contribution becomes negative. The study empirically examines this nonlinear relationship using data from 47 emerging economies for the period 1991–2019. Methodology: In the study, the Method of Moments Quantile Regression (MMQREG) technique, which can capture marginal effects that differ according to income levels, was applied. The robustness of the findings is tested with Dynamic OLS (DOLS) and Driscoll-Kraay methods. Results: The results obtained show that public expenditures increase growth up to a certain threshold, and if this threshold is exceeded, it has negative effects on growth. While the optimal level of public expenditure for low-income countries is approximately 15 per cent of GDP, this ratio increases to 19 per cent in high-income countries. This shows that the impact of public expenditures on growth varies according to country conditions. Conclusion: The study reveals that the effect of public expenditures on economic growth cannot be explained by a universal policy ratio and that each country should develop differentiated fiscal policies in line with its income level and institutional structure.
