Small economies are usually classified by the size of their GDP. Among the small states, which can be determined by various criteria, there are many small economies. Smallness of the economy influences the vulnerability of the state, and if it is connected with the other potentially negative factors (land-locked or island position) or reliance on a few export products, it can create vulnerable economies. Concurrently, smallness of the economy can be an advantage, since it provides better conditions for faster economic growth and makes transformations of the economy easier. This article brings a quantitative comparative study of the small economies, classified by the size of their total GDP. Sets of macroeconomic data (foreign direct investment [FDI] net inflows in current US$ and GDP in current US$; external debt and GDP) were studied, for which the correlation between the FDI and GDP was calculated (for 40 smallest economies), as was the regression analysis between the FDI net inflows (independent variable) and the gross fixed capital formation (GFCF), as well as between the FDI net inflows and the growth of external debt for the 10 smallest economies between 1981 and 2014. The results were used to describe if there is a significant connection between FDI and external debt and if it can be mathematically modeled. All the data were taken from the web pages of the World Bank. The correlation analysis for FDI and GDP for the same years was also done. The countries that were studied had the smallest 40 economies in the world in 1981 (starting SMALLNESS OF THE ECONOMY AS A (DIS)ADVANTAGE 417
Friedrich Hayek was a staunch advocate of the free market principle. He was convinced that progressive taxation was a great threat to individual liberty and social fairness, particularly because there is no limit how high a progressive rate can be in it. The only explanation by which a progressive taxation can be defended is a wish to alter the income distribution, but this approach cannot be explained by any scientific argument. Progressive taxation is unjust and short-sighted while, according to Hayek, a proportional tax system satisfies a standard of fairness and justice because it applies the same general rule to all and prevents discrimination against the well-off taxpayers. Key words: redistribution, fiscal system, tax policy, Friedrich Hayek.
This article examines and presents thoughts on previous and recent analyses of pension system in Croatia, after which authors identify main conclusions and present strongholds towards future optimization of pension system in Croatia. Main points considering optimization come from analyzed and projected effects of different case scenarios, in particular changes and/or reforms in Croatian pension system. All the significant intellectual contributions on pension system are analyzed from the period of pension reforms in Croatia from 2002 until 2011, along with some recent but significant analyses. This study also identifies fundamental problems in Croatian pension system and presents a new perspective considering the direction of potential future changes with having the increase in level of sustainability and monetary pension levels as primary goals.
ARTICLE INFO
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.