The Eurozone’s influence on the cyclical macroeconomic performance : comparative analysis of Slovenia and Croatia

Tajnikar, Maks (author), Došenović Bonča, Petra (author), Rubinić, Ivan (author)

This paper analyses the impact of cyclical external shocks on the macroeconomic performance of Eurozone and EU member countries. The latter is achieved through a comparative study of two EU countries, Slovenia and Croatia, of which only the former is a Eurozone member state. Cross-country differences are observed over the 2000-2018 period, thus covering all stages of the economic cycle. The primary hypothesis is that the Eurozone economic integration provides its members with comparably greater macroeconomic stability and balanced growth rates. The research elaborates on the possibilities and effects of more autonomous macroeconomic adjustments tailored to the specific needs of non-Eurozone EU countries. Methodologically, the study exhibits an intricate nexus among theoretical, empirical, and institutional economics and shows that the impact of the country’s international interconnectedness, stemming from the economic and geographical links, bears greater importance than Eurozone membership. Concurrently, this analysis confirms that whether the Eurozone’s benefits outweigh the shortcoming of monetary sovereignty abnegation depends predominantly on the capabilities of individual countries and Eurozone’s institutions to design and execute an effective monetary-fiscal policy mix.

• Language: English
• Keywords: macroeconomics, economic policy, Slovenia, Croatia, Eurozone accession, macroeconomic effects, cyclical fluctuations
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: EF - School of Economics and Business
• Publication status: Published
• Publication version: Version of Record
• Year: 2023
• Number of pages: 24 str.
• Numbering: Vol. 36, no. 2, art. 2179502
• PID: 20.500.12556/RUL-146438
• UDC: 338.2
• ISSN on article: 1331-677X
• DOI: 10.1080/1331677X.2023.2179502
• COBISS.SI-ID: 152032515
• Publication date in RUL: 01.06.2023

Record is a part of a journal

• Title: Ekonomska istraživanja = Economic research
• Publisher: Taylor & Francis, Sveučilište Jurja Dobrile u Puli
• ISSN: 1331-677X
• COBISS.SI-ID: 6796877

Licences

• License: CC BY 4.0, Creative Commons Attribution 4.0 International
• Link: http://creativecommons.org/licenses/by/4.0/
• Description: This is the standard Creative Commons license that gives others maximum freedom to do what they want with the work as long as they credit the author.

Secondary language

• Language: Slovenian
• Keywords: makroekonomija, ekonomska politika, Slovenija, Hrvaška

Projects

• Funder: ARRS - Slovenian Research Agency
• Project number: P5-0117
• Name: Trajnostna konkurenčnost slovenskega gospodarstva v evropskem in globalnem okviru