The purpose of this study was to investigate the causal relationship between foreign direct investment in tourism and tourism gross value added in Croatia. The study employed econometric techniques, such as the unit root test, Johansen co-integration, and the Granger causality test, in a vector error correction model (V.E.C. model), and the Toda-Yamamoto causality test in a vector autoregressive model (V.A.R. model), using quarterly time-series data from 2000(1) to 2012(4). The results confirm the existence of a stable co-integrated relationship between variables in the long term. A short-term relationship was also proved between foreign direct investment in tourism and gross value added, using the Toda-Yamamoto causality test. By including control variables, the two-way causality between the subject variables was proven using the Granger causality test.

The key goal of this research is to empirically determine the effects of terrorism on

Research question and the most important issue in this paper relates to the determination of CO2 emission drivers in EU and the possibility of its reduction in the era of the fourth industrial revolution. EU strategies and economic policies are directed toward sustainable development, with special emphasis on reducing CO2 emissions towards carbon neutrality. The method used in this research is the Panel Generalized Method of Moments (GMM) two-step dynamic estimator on 27 EU countries in the period 2012–2019. The research resulted with the following findings: innovation activity, industrial structure and development, human capital, and institutional framework; these are all statistically associated with CO2 emission levels in a negative manner, thus, contribute significantly to the reduction in CO2 emissions. Following the empirical results, it may be concluded that reaching sustainable development goals requires the EU to enhance innovation activity, technological development, reshape its industrial structure, create high-quality human capital, and increase the quality of its public institutions.

This research investigates competitiveness of sugar manufacturing companies of the European Union (EU). Sugar industry represents a vital part of the EU food and beverages industry. The aim of the research is to show how EU sugar producers can be more competitive on internal and global sugar market. The methodology includes dynamic panel data models using sample covering up to 189 sugar manufacturing companies from 25 EU Member States in the period 2008-2016. The key results demonstrate different impact of technology (Research and development activity), investments, sugar beet production, costs of employees, gas and sugar beet prices on average revenue of the EU sugar industry. The results confirm the importance of inputs such as natural gas, revenues from the previous period and investments as key factors of EU sugar industry competitiveness. The proposals and recommendations are presented after research results.

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Recent economic turmoil has revived interest in the quest

The main aim of this paper is to measure the consequences of terrorist activities on capital flows of the developed countries. Capital flows are interpreted as FDI inflows and outflows. The methodology is based on the dynamic panel data models (System-2 step-GMM estimator) using a sample of 36 developed countries all over the world from 2000 to 2016. The key results indicate that the terrorist incidents have different impact on capital flows of the developed countries compared to impacts of economic and institutional variables. All the variables used in the paper show the level of their impact on capital flows. The results indicate that terrorist activities weaken economic activity of a country, while minimising capital flows in certain situations. The recommendations and proposals are given based on the results of research.

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