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10Th International Conference “Challenges of Europe University of Split Faculty of Economics 10th International Conference CHALLENGES OF EUROPE: THE QUEST FOR NEW COMPETITIVENESS Conference Proceedings 8th - 10th May, 2013 Split, Croatia ISSN 1847-4497 UDC 338.24(4)(063) International Conference CHALLENGES OF EUROPE: THE QUEST FOR NEW COMPETITIVENESS 10th CONFERENCE 2013 Publisher: Faculty of Economics, University of Split Cvite Fiskovića 5 21000 SPLIT, CROATIA Phone: + 385 21 430 600 Fax: + 385 21 430 701 For the Publisher: Željko Garača, Dean Managing Editors: Mrnjavac Željko Vinko Muštra Reviewers / Editorial Board: Nick Adnett (UK) Ewa Helinska-Hughes (UK) Will Bartlett (UK) Michael Hughes (UK) Milford Bateman (UK) Tanja Kesić (Croatia) Jan van de Borg (Belgium, Italy) Evan Kraft (USA) Marin Buble (Croatia) Josef Langer (Austria) Giuseppe Canullo (Italy) Lubomír Lízal (Czech Republic) Božidar Cerović (Serbia) Katarina Ott (Croatia) Alberto Chilosi (Italy) Janez Prašnikar (Slovenia) Muris Čičić (Bosnia-Herzegovina) Dani Rodrik (USA) Petar Filipić (Croatia) Antonis Simintiras (UK) Vojmir Franičević (Croatia) Jan Svejnar (USA) Robert M. Grant (Italy) Milica Uvalic (Italy) Branko Grčić (Croatia) Krešimir Žigić (Czech Republic) Iraj Hashi (UK) Typesetting: Josip Grgić, Diana Mijačika, Velimir Skroza Cover Design: Maja Ćukušić CHALLENGES OF EUROPE: THE QUEST FOR NEW COMPETITIVENESS Tenth International Conference Challenges of Europe Proceedings: PDF on CD ROM with full papers Edited by: Faculty of Economics in Split University of Split Faculty of Economics Split, Croatia SPLIT, May 08-10, 2013 Copyright Faculty of Economics in Split, Split, 2013 All rights reserved. No part of this publication may be reproduced, stored in retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the Faculty of Economics in Split. UDC 336.71(4)(063) 504(4)(063) ISSN 1847-4497 Organizing Committee: Vinko Muštra, Chairperson Nikša Alfirević Paško Burnać Maja Ćukušić Danijela Coppola Josip Grgić Velimir Skroza Marina Tudor IV Tenth International Conference on Challenges Of Europe Under the auspices of: His Excellency, The President of the Republic of Croatia Mr Ivo Josipović Programme Committee: Željko Mrnjavac, Chairperson (Croatia) Nick Adnett (UK) Ewa Helinska-Hughes (UK) Will Bartlett (UK) Michael Hughes (UK) Milford Bateman (UK) Tanja Kesić (Croatia) Jan van de Borg (Belgium, Italy) Evan Kraft (USA) Marin Buble (Croatia) Josef Langer (Austria) Giuseppe Canullo (Italy) Lubomír Lízal (Czech Republic) Božidar Cerović (Serbia) Katarina Ott (Croatia) Alberto Chilosi (Italy) Janez Prašnikar (Slovenia) Muris Čičić (Bosnia-Herzegovina) Dani Rodrik (USA) Petar Filipić (Croatia) Antonis Simintiras (UK) Vojmir Franičević (Croatia) Jan Svejnar (USA) Robert M. Grant (Italy) Milica Uvalic (Italy) Branko Grčić (Croatia) Krešimir Žigić (Czech Republic) Iraj Hashi (UK) V CONTENTS Foreword ............................................................................................................................................................................ IX Sponsors.............................................................................................................................................................................. XI NATIONAL AND EUROPEAN DEVELOPMENT FRAMEWORK Bejaković, Predrag; Mrnjavac, Željko: SKILL MISMATCHES AND ANTICIPATION OF THE FUTURE LABOUR MARKET NEED: CASE OF CROATIA .......................................................................................................................................................................... 3 Chilosi, Alberto: LONG-TERM UNEMPLOYMENT IN THE VARIETIES OF CAPITALISM ........................................................... 23 Čučković, Nevenka; Vučković, Valentina: EDUCATION-RESEARCH-INNOVATION POLICY TRIANGLE AND COMPETITIVENESS OF THE CROATIAN SME SECTOR .......................................................................................................................................... 35 Dragutinović Mitrović, Radmila; Bjelić, Predrag: INTERNATIONAL COMPETITIVENESS AND ASYMETRY IN TRADE REGIME IN THE EU INTEGRATION: EVIDENCE FROM WESTERN BALKANS ................................................................................... 57 Karalić, Amir: IMPACT OF THE PUBLIC DEBT ON FISCAL SYSTEM IN CONTEXT OF BUDGET BALANCE- BIH AND SURROUNDING COUNTRIES .......................................................................................................................... 73 Kešeljević, Aleksandar; Spruk, Rok: IS HERITAGE INDEX OF ECONOMIC FREEDOM A RELIABLE INDICATOR OF ECONOMIC FREEDOM? ................................................................................................................................................................... 89 Mikulić, Davor; Galić Nagyszombaty, Andrea: DETERMINANTS OF THE UNOFFICIAL ECONOMY IN CROATIA ................................................................. 101 Mrnjavac, Željko; Blažević, Sanja: IS MINIMUM WAGE A GOOD POLICY FOR POOR WORKERS IN CROATIA? ................................................ 121 Setnikar Cankar, Stanka; Petkovšek, Veronika: FISCAL INSTABILITY IN SLOVENIA DURING THE ECONOMIC CRISIS ....................................................... 147 Yevdokimov, Yuri: MODELING ECONOMIC CONSEQUENCES OF CLIMATE CHANGE IMPACTS ON GROUND TRANSPORTATION IN ATLANTIC CANADA ........................................................................................................ 157 CITIES AND REGIONS Pavlinović, Slađana: QUALITY, CHEATING AND WORD-OF-MOUTH ................................................................................................. 167 Pevcin, Primož: LOCAL GOVERNMENT COST FUNCTION: CASE STUDY ANALYSIS FOR SLOVENIAN MUNICIPALITIES ..................................................................................................................................................... 187 Razović, Mili; Mimica, Zvonimir: SCIENCE-TECHNOLOGY PARK AND REGIONAL DEVELOPMENT ................................................................ 195 VII Sedlan Kőnig, Ljerka: INCREASING COMPETITIVENESS OF UNIVERSITIES BY DEVELOPING STUDENTS' ENTREPRENEURIAL BEHAVIOR .......................................................................................................................... 215 Senegović, Iva; Harmina, Anita; Gregov, Zrinka: THE CONCEPT OF ENTREPRENEURIAL UNIVERSITY AND POTENTIAL OBSTACLES FOR ITS IMPLEMENTATION IN CROATIA .......................................................................................................................... 231 Sumpor, Marijana; Đokic, Irena: ARE THERE ANY IMPROVEMENTS IN GOVERNANCE AFTER A DECADE OF REGIONAL STRATEGIC PLANNING IN CROATIA? ................................................................................................................. 261 BUSINESS SOPHISTICATION Arslanagić, Maja; Kadić-Maglajlić, Selma; Čičić, Muris: SERVICE QUALTIY IN BUSINESS SCHOOLS: ROLE OF FACULTY AND ADMINISTRATIVE STAFF IN QUALITY PERCEPTIONS ................................................................................................................................... 283 Dragnić, Daša: IMPACT OF INTERNAL AND EXTERNAL FACTORS ON PERFORMANCE OF FAST-GROWING SMALL AND MEDUIM BUSINESSES ..................................................................................................................... 295 Poklepović, Tea; Peko, Boris; Smajo, Jure: COMPARISON OF ALTMAN Z SCORE AND BEX INDEX AS PREDICTORS OF STOCK PRICE MOVEMENTS ............................................................................................................................................................. 325 Pšeničny, Viljem; Novak, Riko: THE IMPORTANCE OF THE GROWTH OF DYNAMIC ENTERPRISES FOR THE NATIONAL ECONOMY: AN EXAMPLE OF A GROWTH FORECAST FOR SLOVENIA UNTIL 2015 ................................. 337 Pšeničny, Viljem; Jakopin, Edvard; Vukčević, Zoran; Ćorić, Gordana: DYNAMIC ENTREPRENEURSHIP - GENERATOR OF SUSTAINABLE ECONOMIC GROWTH AND COMPETITIVENESS ................................................................................................................................................. 361 VIII Tenth International Conference on “Challenges of Europe” FOREWORD Dear Colleagues, it is our honor and pleasure to present you the Proceedings of our 10th conference “Challenges of Europe”. We are proud that we have hosted the jubilee, 10th conference in the row. In addition, it was held just a few weeks before Croatia (finally) accessed the EU. The idea for the Conference was born in the early 1990s. At the time, transition was a broad and widely used term, connected with many different fields and processes in the modern society and economy. Obviously, transition was a process with incremental role in the economic activity in this part of the globe and therefore the title "Enterprise in Transition" was aimed at stimulating the scientific analysis and research of this specific phenomenon. By changing the name from “"Enterprise in Transition" to “Challenges of Europe” in 2009, the Conference wanted to continue a dialogue between scientists and practitioners in quest for solving burning economic issues, and at the same time stress the fact that these countries today face the same challenges as other European countries that are struggling to find ways to cooperate with one another and manage the complexity of the current economic situation. The transition process has been replaced by the short-term crisis management and investigation of
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