The book presents the results of research on the role of companies’ investments in tangible and intangible capital. We studied 200 largest manufacturing and 150 largest service enterprises using available public data. The book addresses the question of how individual industries responded to the crises. The special emphasis is put on non-tradable sectors of the economy, such as hotel and tourism, trade, transport, information technology, telecommunications, energy, construction and banking. The study reveals the reasons why the crisis in Slovenian economy is taking longer than one might expect and highlights the measures to overcome the crises faster.
The article studies the recovery process in Slovenia after the crises. In the first part it focuses on the role of collateral as an amplification mechanism in Slovenia. The higher the average collateralization of credits before the crisis, the more damaging are the effects after the bubble burst. In our research the article provides evidence for such a mechanism in Slovenia. Secondly, the article looks how contagion could spread from liquidity-squeezed enterprises to their suppliers. It is shown in this study that spreading illiquidity is an important channel of contagion in the Slovenian environment and an important factor in the slow recovery of the Slovenian economy. The analysis showed evidence of a credit-based amplification mechanism in Slovenian firms. It also revealed segments of enterprises endangered by this mechanism and analyzed the most endangered enterprises stalled in recovery. For conclusion contagion mechanism because of illiquidity cascades are discussed.
The article addresses the questions why it is still crucial for national states to retain the commitment to reach the objectives of economic development in the world of uneven globalization and why the companies' investments in tangible and intangible capital are so important. In the first part, the article gives a brief overview of economic development and the explanation of the premises of the endogenous growth theory addressing the rationale behind globalization processes that marked past decades. The results of globalization are presented and the issue of national economic policy and so- called pragmatic development policy, which is not in line with traditional view, is addressed.