EFZG working paper series, No. 03, 2006.
Other
Mirjana Dragičević
; Faculty of Economics and Business, University of Zagreb
Alka Obadić
orcid.org/0000-0002-8915-8853
; Faculty of Economics and Business, University of Zagreb
Abstract
The findings of the first part of the research study illustrate that during transition period in Croatia
huge differences in economic development level of single regions has been noticed. This could also be seen
in movements of labour market. Increasing problem of aggregate unemployment from year to year points to
existence of regional structural unemployment. In the context of this larger discrepancy, regional
differences have special position, that have emerge at the unemployment level and employment
composition, but also in the context of new employment. Such situation is present in old and new EU
members, as well as in Croatia. The analysis of latest trends in employment and unemployment movements
illustrate that Croatia has the lowest employment rate between old and new EU members, and that only
Slovakia and Poland have higher unemployment rates than Croatia.
In circumstances of steady and increasing unemployment higher importance is aimed at labour
market institution and policy development which role is particularly elaborated in third and forth part of
this research. The institutional system of the labour market consist of social system of protection, flexibility
of lay off security, implementation of active labour market policies and level of regional labour force
mobility. All institutional forms in transitional countries have become more important in the moment of
conversion to market economic conditions. The forth part of the research shows that with unemployment
rate increase, duration and amount of unemployment compensation significantly decrease. The main goal
was to stimulate job seekers to start look for a job and to reduce unemployment duration. Therefore in
transition countries labour market policies moves from passive to active one. Mainly it can be concluded
that use of passive labour market policies stimulates unemployed to stay inactive for a longer period, while
active ones try to make process of employment or re-employment easier. The majority of transition
countries spent less than 1% of GDP on passive and active labour market policies.
The last part of the first part of the research study is directed to establishing regional differences at
the Croatian labour market and the influence of the Free Business Zone Varaždin (place of biggest greenfield
investment in Croatia) on job creation. The average registered yearly unemployment rate in Croatia
slightly decreased from 18,0% in 2004 to 17,9% in 2005, but regional unemployment differences still
remains. The number of registered vacancies at the Employment Office decreased during 2005 and regional
employment in Croatia has been influenced by seasonal employment in tourism again. Setting up of Free
Business Zones has more and more considerable influence on job creation in Croatia. The main goal for its
foundation, besides the economic development reasons, is in attracting FDI, the new technologies
development, export growth according to the export orientation of the total production in the zone,
employment growth, GDP growth and increase of citizen's standard in each county. It is expected that in
the Free Business Zone Varaždin from 2005 to 2008 export will exceed 500 millions Euro and that around
3500 new jobs will be created. In the absolute quantity that is maybe a small number, but if it is planned
that in such way the number of new employment in Varaždinska county will increase for approximately
18% yearly, the importance of Free Business Zone in Varaždin is not questionable. It is expected that
unemployment in Varaždinska county will decrease below European average in 2008.
Second part of the research study emphasizes a role of regional clusters in increasing regional
competitiveness. Regional clusters, which can be defined as geographically bound concentrations of
interdependent firms and knowledge/technology suppliers, are seen as an important instrument for
promoting competitiveness and new employment growth. In many regions, clusters are enabling firms to
overcome internal limitations by joining efforts and resources with other firms, R&D institutions and
universities, and public sector organisations. Clusters established at the regional level can form the perfect
environment to enhance innovation by allowing firms to take advantage of specialised suppliers, local
know-how, information, skills and education. The proximity of customers, competitors, suppliers,
universities, and research/innovation organisations favours the growth, the employment, and the
attractiveness of the regions. Theoretical foundations of the cluster concept could be found in the different
approaches, such as agglomeration, or district theories, but it is mostly based on Porter,s diamond analysis.
Regional clusters became the strategic development tool in achieving the Lisbon agenda in Europe.
The same is the case in most post-transition economies. The situation in Croatia is different, because the
institutional prerequisites for the cluster development are not completely developed. Croatia is still not
divided into the regions, according to the EU standards and regional statistical accounts are not realised yet and there is no relevant basis to comparative regional statistics. There is a low level of communication and
coordination between national, counties and local authorities. Adequate microeconomic policies that
support cluster development are missing, such as educational policy and incentive policy to foreign direct
investment.
On the national level the Regional development strategy is built up, the same as the regional
operational plans in most counties. Regional development agencies also exist in most counties and they are
mostly engaged on the SMEs projects and other actions dealing with competitiveness building. In different
counties, the various types of business integrations are created, such as districts, business zones etc.
Regional clusters are foreseen as the future goals in many documents, but only one internationally
recognised cluster in Croatia exists. It is BIOS cluster, in publishing and printing sector.
Keywords
Hrčak ID:
137220
URI
Publication date:
21.5.2006.
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