Economic Review, Vol. 52 No. 3-4, 2001.
Original scientific paper
AGGREGATE CONSUMPTION IN CROATIA AND TOURISM
Branko Blažević
Abstract
External and internal disequilibrium of Croatian economy generally reflect in entire disequilibrium and finally in strong financial instability of Croatia. The author deals with the problem of this disequilibrium and looking for answer to the question: how to get out of it? The answer is directed to change of goals of macroeconomic policy towards formation and change of existing structure and size of aggregate demand or consumption. In looking and finding adequate answer, the author comes to foreign tourist consumption which he observes as a part of aggregate consumption of Croatia. He analyses tourist consumption and foreign exchange inflow of tourism and evaluates what would be the influence of tourist services at the level of gross domestic product, especially on balance of payments and negative balance coverage. In this way Croatia will more expose itself towards world and open market and turn its present expressively negative trends in positive direction. Exactly tourism is a strong factor for aggregate consumption increase and creation of open economy. The author expounds its researches on possible effects of foreign tourist consumption which rely upon real pressumptions of tourist consumption development and realizable foreign overnights which Croatia had already realized through its potentials. Recognition of tourist national product as strategic product and tourist consumption, leads Croatia and its economy from vicious circle of poverty to welfare world.
Keywords
Hrčak ID:
28715
URI
Publication date:
15.4.2001.
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