Mehanizmi prilagodbe hrvatske prerađivačke industrije
Croatian Manufacturing Industry Adjustment Mechanisms:

Analysis in Terms of Labour Market

Summary/Abstract: The purpose of this paper is to explore whether different trends of basic manufacturing industry indicators (in particular salaries and employment) have developed during the ongoing crisis when compared to previous trends. An additional aim is to establish whether there are different adjustment mechanisms across individual activities, i.e., whether balance mechanisms through labour market have been developed. An analysis was conducted based on the data collated by the Croatian Bureau of Statistics which for the period 2000 – 2010 are available together with monthly frequencies for the majority of analysed series according to the new 2007 national classification of activities. Causality testing was conducted for the period 2005 – 2010 using Grange causality test. The results show that at the level of the manufacturing industry the dominant cause-and-effect relationship was between production and employment trends. This is a quantitative confirmation of a widespread hypothesis that the main adjustment mechanism of the manufacturing industry in the process of restructuring was the increase of productivity by reducing employment and that this process continued even beyond the initial transition period. An analysis at the level of individual activities within the manufacturing industry shows that labour market mechanisms, i.e., price competitiveness in some activities have also had a significant impact on employment trends.

• Details
• Contents