Economic diplomacy as an instrument of progress and promotion of the Republic of Croatia Babić, Marko Doctoral thesis / Disertacija 2019 Degree Grantor / Ustanova koja je dodijelila akademski / stručni stupanj: University of Zadar / Sveučilište u Zadru Permanent link / Trajna poveznica: https://urn.nsk.hr/urn:nbn:hr:162:497993 Rights / Prava: In copyright Download date / Datum preuzimanja: 2021-10-07 Repository / Repozitorij: University of Zadar Institutional Repository of evaluation works SVEUČILIŠTE U ZADRU i LIBERTAS MEĐUNARODNO SVEUČILIŠTE ZAJEDNIČKI POSLIJEDIPLOMSKI SVEUČILIŠNI STUDIJ MEĐUNARODNI ODNOSI Marko Babić ECONOMIC DIPLOMACY AS AN INSTRUMENT OF PROGRESS AND PROMOTION OF THE REPUBLIC OF CROATIA Doktorski rad Zadar; Zagreb, 2019. SVEUČILIŠTE U ZADRU i LIBERTAS MEĐUNARODNO SVEUČILIŠTE ZAJEDNIČKI POSLIJEDIPLOMSKI SVEUČILIŠNI STUDIJ MEĐUNARODNI ODNOSI Marko Babić ECONOMIC DIPLOMACY AS AN INSTRUMENT OF PROGRESS AND PROMOTION OF THE REPUBLIC OF CROATIA Doktorski rad Mentor Viši znanstveni suradnik, Miomir Žužul, dr.sc. Zadar; Zagreb, 2019. UNIVERSITY OF ZADAR BASIC DOCUMENTATION CARD I. Author and study Name and surname: Marko Babić Name of the study programme: Joint postgraduate doctoral study International Relations Mentor: Senior scientific associate Miomir Žužul, PhD Date of the defence: 10 July 2019 Scientific area and field in which the PhD is obtained: social sciences, interdisciplinary social sciences II. Doctoral dissertation Title: Economic diplomacy as an instrument of progress and promotion of the Republic of Croatia UDC mark: 339.9:327>(497.5) Number of pages: 274 Number of pictures/graphical representations/tables: 8/ 15/ 25 Number of notes: 355 Number of used bibliographic units and sources: 148 Number of appendices: 4 Language of the doctoral dissertation: English III. Expert committees Expert committee for the evaluation of the doctoral dissertation: 1. Assistant Professor Mladen Nakić, PhD, chair 2. Senior Scientific Associate Miomir Žužul, PhD, member 3. Professor Duško Pavlović, PhD, member Expert committee for the defence of the doctoral dissertation: 1. Assistant Professor Mladen Nakić, PhD, chair 2. Senior Scientific Associate Miomir Žužul, PhD, member 3. Professor Duško Pavlović, PhD, member SVEUČILIŠTE U ZADRU TEMELJNA DOKUMENTACIJSKA KARTICA I. Autor i studij Ime i prezime: Marko Babić Naziv studijskog programa: Zajednički poslijediplomski sveučilišni studij Međunarodni odnosi Mentor: Viši znanstveni suradnik, dr.sc. Miomir Žužul Datum obrane: 10. srpnja 2019. godine Znanstveno područje i polje u kojem je postignut doktorat znanosti: društvene znanosti, interdisciplinarne društvene znanosti II. Doktorski rad Naslov: Gospodarska diplomacija kao instrument napretka i promidžbe Republike Hrvatske UDK oznaka: 339.9:327>(497.5) Broj stranica: 274 Broj slika/grafičkih prikaza/tablica: 8/ 15/ 25 Broj bilježaka: 355 Broj korištenih bibliografskih jedinica i izvora: 148 Broj priloga: 4 Jezik rada: engleski III. Stručna povjerenstva Stručno povjerenstvo za ocjenu doktorskog rada: 1. doc. dr. sc. Mladen Nakić, predsjednik 2. dr. sc. Miomir Žužul, viši znanstveni suradnik, član 3. prof. dr. sc. Duško Pavlović, član Stručno povjerenstvo za obranu doktorskog rada: 1. doc. dr. sc. Mladen Nakić, predsjednik 2. dr. sc. Miomir Žužul, viši znanstveni suradnik, član 3. prof. dr. sc. Duško Pavlović, član Izjava o akademskoj čestitosti Ja, Marko Babić, ovime izjavljujem da je moj doktorski rad pod naslovom „Economic diplomacy as an instrument of progress and promotion of the Republic of Croatia“ (hrvatski prijevod: Gospodarska diplomacija kao instrument napretka i promidžbe Republike Hrvatske) rezultat mojega vlastitog rada, da se temelji na mojim istraživanjima te da se oslanja na izvore i radove navedene u bilješkama i popisu literature. Ni jedan dio mojega rada nije napisan na nedopušten način, odnosno nije prepisan iz necitiranih radova i ne krši bilo čija autorska prava. Izjavljujem da ni jedan dio ovoga rada nije iskorišten u kojem drugom radu pri bilo kojoj drugoj visokoškolskoj, znanstvenoj, obrazovnoj ili inoj ustanovi. Sadržaj mojega rada u potpunosti odgovara sadržaju obranjenoga i nakon obrane uređenoga rada. Zadar, 11. srpnja 2019. I. INTRODUCTION One of the most significant processes that has arrived as a result of globalisation is internationalisation. Accordingly, internationalisation of economy as such has attracted considerable interest and scientific research in this field is being carried out from various perspectives. Nevertheless, not only companies but also governments and supranational organizations such as the European Union are faced with the challenges arising from the fact that majority of traditional barriers on the global geopolitical and economic map do not exist anymore or at least did not exist up until latest developments that coincide with the President Trump's administration that took somewhat different course of action than usually when international relations and trade are at stake. Although it is claimed that international trade and business has great potential to be beneficial both to governments and companies, there exist still certain obstacles to the internationalisation process. Experts advocating it strongly established that it is necessary to eliminate those barriers for a positive effect that reflects in the form of job creation, tax revenue growth, economic and political integration. Thus, in recent times the use of economic diplomacy is being chosen as the significant and effective tool for abolishing these obstacles and at the same time providing quality support to companies in internationalisation. This operations only confirm the trend of change in diplomatic practice which leans more and more towards intensive economic activities. Regardless of how we define it, the predominant opinion is that diplomacy has a constitutive role since it is considered as an effective mean for managing relations between states. Diplomacy is based on principles that enable balance to be accomplished among different stakeholders and powers in international relations. In the past, ambassadors themselves have traditionally been the most prominent promoters of trade. Simultaneously with globalisation and an ever-greater economic integration, the role of governments in reacting and managing these processes became increasingly important. The importance of economic diplomacy increases and that implies the widespread use of methods trying to achieve the maximum economic benefit through promotion of exports, foreign investments attraction, technology transfer encouragement, etc. Concurrently, the number of participants active in the implementation of such approach also becomes ever greater meaning that heads of state and 1 government, ministers, diplomats of different ranks and various state institutions also carry out all necessary activities in the protection and promotion of their country's economic interests. In addition to those usually called the state actors, stakeholders can also possess the non-state character (multinational companies, business associations, non-governmental organisations, trade unions, lobby groups, etc.). The former and the latter have one thing in common, that is to work together in the wide spectre of forums, i.e. in more than one arena (national economy, international economy and international organisations). It is quite clear nowadays that civil servants and diplomats work both within and outside their ministries and embassies, and are active in the areas of economy and finance performing many business tasks. They provide considerable assistance to their country’s companies that intend to establish branch offices abroad, and promote export, trade and investment. State visits of heads of state and/or government are more and more considered as business delegations during which the presidents and ministers discuss current economic trends and activities and try to exploit opportunities for improving trade and business co-operation. It may be asserted that the economic diplomacy implies, inter alia, the use of political (diplomatic) skills and tools with the aim of achieving economic goals. It is a governmental activity whereby the business community is provided assistance within which economic diplomats perform all significant activities abroad as they are part of the diplomatic mission staff or a trade/investment promotion institution personnel. Although it has existed before and as such has been studied and upgraded, the subject of economic diplomacy has become the topic that attracts more intensive research since the mid- 2000s, with the emphasis being placed on establishing a causal link between the variables of economic diplomacy on the one hand and its effect on trade on the other side. Survival in today's global business environment is one of the priorities and crucial to achieving this goal can be exactly the diplomacy; the one that tries to gain access to and expansion on the foreign market, the one that successfully convinces foreign companies to invest in the home country and the one in which experts from the business community actively participate. Diplomacy can be a key word but also an additional explanation for success or failure on the international economic scene. Numerous states have adopted the modern approach when economic diplomacy is in question and as a result, they made significant progress in all the above-mentioned areas. Therefore, it is time that Croatia makes a significant or even radical step forward in this direction, changes