Business Excellence, Vol. 15 No. 1, 2021.
Preliminary communication
https://doi.org/10.22598/pi-be/2021.15.1.63
THE IMPACT OF MONETARY AND FISCAL POLICY ON INDUSTRIAL PRODUCTION IN CROATIA
Petra Palić
orcid.org/0000-0001-5181-6657
; Hrvatsko katoličko sveučilište, Zagreb
Abstract
This paper investigates the impact of monetary and fiscal policy on industrial
production in Croatia. Numerous foreign and domestic studies have estimated this
relationship with the aim of making recommendations to economic policy makers. Using
the panel model, it examines how relative producer prices, government consumption,
personal consumption, interest rates, real effective exchange rate and foreign demand
affect 23 components of industrial production according to the level of the technological
intensity. The analysis is conducted on quarterly data for the period from the first quarter
of 2000 to the last quarter of 2015. Also, an analysis of the impact of monetary and fiscal
policy on industrial production for the period before and after the economic crisis in the
Republic of Croatia is conducted. The results of the empirical part of the research are in
accordance with the domestic and foreign literature, and a statistically significant
relationship between the impact of monetary and fiscal policy on industrial production is
noticed.
Keywords
industrial production; fiscal policy; monetary policy; panel analysis
Hrčak ID:
257990
URI
Publication date:
1.6.2021.
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