In order to preserve its immovable cultural heritage, Slovenia needs 32.7 million euros of investments annually, which is feasible with 16.4 million euros of state subsidies (directly or in the form of tax relief). Investments in the restoration of immovable cultural heritage represent an increase in one of the components of final consumption with a positive impact on the economy, and at the same time these investments also enable the growth of tourism activities in cities. According to the results of the input-output analysis and taking into account the activities of construction, urban tourism and derived personal spending, derived investment spending and derived government spending, value added in Slovenia increases by 60.9 million euros (0.2% of GDP) at an annual rate of 22.4 million euros of higher general government revenues. The net public finance effect of incentives for the restoration of immovable cultural heritage is positive for 36.5%. Given Slovenia's fiscal constraints, it makes sense for the state to encourage the restoration of immovable cultural heritage through tax relief. We have good examples of them in the Member States, especially in Germany, France, Spain, and partly in Italy. The results of the study were given in printed and electronic form and serve the client (Government of the Republic of Slovenia, Ministry of Culture) as a basis for rehabilitating the maintenance of immovable cultural heritage, which found itself in a critical situation due to the termination of EU funding. The results were presented in PowerPoint format at three working groups of the Ministry of Culture, the Ministry of Economic Development and Technology and the Ministry of Finance.
F.30 Professional assessment of the situation
COBISS.SI-ID: 528495641Australia and New Zealand are developed countries with a much higher GDP per capita than Slovenia. In this context, they are interesting for Slovenian exporters of industrial products, in particular machines, vehicles, electrical appliances and chemical products. The price elasticity of Slovenian exports of goods to Australia is 0.9, while the income elasticity is 4.6. The price (5.2) and income (7.5) elasticity of Slovenian imports from Australia is higher than the corresponding elasticity of Slovenian exports. The price elasticity of Slovenian exports of goods in exchange with New Zealand is 3.6. The income elasticity of Slovenian exports to New Zealand is 5.8. On the other hand, the price elasticity of Slovenian imports from New Zealand is 7.6, while income elasticity is 3.7. Despite the higher price elasticity of Slovenian imports from Australia and New Zealand from the price elasticity of exports to these markets, the actual Slovenian surplus of trade leads to the fact that even with the same mutual price reduction (for example, by 1%), Slovenian surplus is still increasing. The Slovenian economy is losing its potential position on the Australian market also due to the intensive integration of this country into trade partnerships with developed Pacific economies - Japan and South Korea. The effect of these agreements on Slovenian exports has been accumulating over the years. In 2017 it amounted to 14% of Slovenia's potential exports to Australia. In the case of a reciprocal elimination of customs duties, the increase in foreign trade surplus in trade with Australia will enable the Slovenian economy to increase revenue between 23.1 million euros and 23.5 million euros, added value between 8.2 million euros and 9.3 million euros and employment between 210 and 237 workers. The increase will be the largest in the machinery industry, the production of electrical appliances and the production of chemical products. Similarly will the increase in the foreign trade surplus in trade with New Zealand enable the Slovenian economy to raise revenue between 1.4 million euros and 3 million euros, added value between 0.5 million euros and 1.1 million euros, and employment for 12 to 27 workers. The impact will again be greatest on the activity of the machinery industry and the production of electrical appliances with indirect effects on the metal products industry and wholesale trade. The results of the study were presented in printed and electronic form and serve the client (Government of the Republic of Slovenia, Ministry of Economic Development and Technology) as a basis for decision-making in Slovenia's support of EU trade agreements with Australia and New Zealand. The results were also presented in PowerPoint format at a press conference organized by the Ministry of Economic Development and Technology.
F.30 Professional assessment of the situation
COBISS.SI-ID: 529034777The article addresses the challenges of transition to Industry 4.0 and its consequences for middle-income countries, with special emphasis on Slovenia. It shows that, given the expected contribution to productivity and profitability, the transition to Industry 4.0 is inevitable, which is expected to happen in practice, according to the literature, in the 2020s. For countries such as Slovenia, this transition represents an opportunity for repositioning within global value chains, which is also confirmed by the empirical literature. However, as the article shows, this requires a significantly higher relative financial investment from these countries than from the leading ones, both on the private and public sides. Without proper prioritization of I4.0 investments, on the other hand, there are major risks in terms of job losses, so the article proposes a comprehensive package of measures from the EU level to individual countries’ and regions’ levels, which must be integrated, focused and targeted and structured. Collaborative ecosystems and developed institutional capacity play a key role. Slovenian approach to smart specialization, e.g. S4, meets these requirements, which is also presented and argued in the article, concluding with the warning that the developed policy framework is only a prerequisite for successful transformation while its success will be determined by the actual implementation of this framework, i.e. further prioritization and adequate funding of S4 measures. The article is topical from the point of view of the key global mega-trend, digital transformation, and presents the consequences for Slovenia with data and literature review. More importantly, it proposes the necessary measures that should be implemented both at the EU and national level. The article was presented and promoted via social media (also by Regional Studies Association), and its messages were also summarized e.g. in the magazine Glas gospodarstva. The book itself was launched at the CONCORDi conference hosted by the EU, Joint Research Council, Smart Specialisation Unit in September 2019 in Seville.
F.24 Improvements to existing system-wide, normative and programme solutions, and methods
COBISS.SI-ID: 25260774The journal Economic Trends is the oldest publication in economics in Slovenia. It is published by EIPF since 1971. In Economic Trends, the members of the research program and other researchers publish their papers based on the results of projects and empirical studies. The journal brings important research findings and makes them accessible also to broader audience. The journal has an important impact on public opinion and on economic policymakers in Slovenia. So far, in over 500 numbers more than 650 scientific and professional papers were published together with regular analysis of economic trends in Slovenia prepared by research group members. Chief editor for the period from 1987 till 2019 is Professor Mencinger and since 2019 mag. Velimir Bole. Other members of our group (prof. Štiblar, prof. Kavkler) are also on the editorial board.
C.05 Editorial board of a national magazine
CRM (Capacity Remuneration Mechanism) was developed in the period after the transition in electricity supply from an infrastructure to a market based activity. In these new circumstances CRM soon became one of the most important instruments for balancing and regulating the market, which is characterized by a very rigid demand and slow response on the supply side, having limited capacities (Cobweb). By coordinating the adjustment capabilities over a long period CRM can help the supply of electricity to accommodate increased demand. The most recent wave of imbalances in the electricity market (extremely low prices for certain "green" manufacturers due to state subsidization; the high cost structure of most "traditional" electric power producers) has deeply affected the Slovenian producers of electric power. The consequences will be reflected in the long run, particularly in terms of compromises to Slovenia's energy stability and a decline in capacities, as well as greater energy dependence, while electricity prices for the final consumer are projected to rise. The analyses presented in the article show that in the case of a four-hour blackout the Slovenian economy would lose between 0.1% and 0.4% of annual GDP while longer (48-hour) blackout would cost the country's economy up to 4% of annual GDP.
F.30 Professional assessment of the situation
COBISS.SI-ID: 13174556