The socioeconomic cost-benefit analysis in the fiscal incentives model for sustainable business and the development of export labor-intensive services in the processing industry of the Republic of Croatia

Commissioned by: Agency for Investment and Competitiveness – Textile, Leather Goods and Footwear Industry
Project duration: February 16, 2015 – April 27, 2015
Project manager: Željko Lovrinčević, PhD

The goal of this project was to provide terms of references for public tender concerning Fiscal support program. Project proposal contained five chapters: Starting assumptions and project goals; Methodological framework and data sources; Analysis of labour intensive, export oriented industries; Alternative scenarios analysis from the point of entrepreneurs, central and local government; Concluding remarks and set of recommendable fiscal measures for labour intensive industries.

Methodology of microeconomic analysis with standard set of microeconomic indicators was identified. Swot analysis framework was established. Input-output analysis was established also in order to be used as a methodology for comparison of three different scenarios. In those scenarios, inclusion of each individual fiscal support instrument was tested in order to asses properly the fiscal impact on central and local government finance and on company balance sheet.