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Analysis Of A Maritime Versus A Landlocked Tourism Dependent Economy: Croatia And The Czech Republic

Author

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  • Kokotovic, Filip

    (University college of international relations and diplomacy Dag Hammarskjold, Zagreb)

Abstract

The relevance of tourism revenue to their respected GDP is comparable in Croatia and the Czech Republic. Aside from having comparable levels of tourism dependency in respect to the percentage of tourism revenue in GDP, there are very few significant structural similarities between the economies of Croatia and that of the Czech Republic. The simple geographic difference of a land-locked versus a maritime economy does not seem to be the most dominant feature in differentiating these two economies. Rather, through Impulse Response Functions (IRFs) and variance decompositions, this paper examines the relationship between the economic growth, public debt-to-GDP ratio, tourism revenue and the unemployment rate by implementing a Vector Autoregressive (VAR) framework. Through this framework, this paper detects structural differences between the economies of Croatia and the Czech Republic. Most notably, this paper concludes that tourism revenue is unable to combat the difficulties presented by macroeconomic imbalances in Croatia. It further concludes that Croatia should strive towards a more diversified economy and attempt to contain the difficulties it faces regarding its public debt and budget deficit.

Suggested Citation

  • Kokotovic, Filip, 2017. "Analysis Of A Maritime Versus A Landlocked Tourism Dependent Economy: Croatia And The Czech Republic," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 8(3), pages 319-328.
    • Handle: RePEc:ris:utmsje:0224
    as

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    File URL: http://utmsjoe.mk/files/Vol.%208%20No.%203/UTMSJOE-2017-0803-10-Kokotovic.pdf
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    References listed on IDEAS

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    5. Mato Bartoluci & Zvjezdana Hendija & Mateja Petracic, 2015. "Implementing Principles Of Sustainable Development In Rural Tourism In Continental Croatia," Economy of eastern Croatia yesterday, today, tommorow, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 4, pages 26-37.
    6. Penda Ivor Altaras, 2015. "Tourism Sector on the Zagreb Stock Exchange (ZSE): What is the Value of Croatian Tourism?," Acta Economica Et Turistica, Sciendo, vol. 1(1-2), pages 15-40, December.
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    Cited by:

    1. Yong Su & Jacob Cherian & Muhammad Safdar Sial & Alina Badulescu & Phung Anh Thu & Daniel Badulescu & Sarminah Samad, 2021. "Does Tourism Affect Economic Growth of China? A Panel Granger Causality Approach," Sustainability, MDPI, vol. 13(3), pages 1-12, January.

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    More about this item

    Keywords

    VAR; Impulse Response Functions (IRFs); macroeconomic imbalances; public debt-to-GDP ratio; sustainable growth;
    All these keywords.

    JEL classification:

    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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