Impact assessment of entrepreneurial zones on local economic outcomes

Figures & data

Figure 1. Entrepreneurial zones by the size and regional location.

Source: Unified Register of Entrepreneurial Infrastructure.

Figure 2. Entrepreneurial zones by the intensity of activation of the available area of the entrepreneurial zone and regional location.

Source: Unified Register of Entrepreneurial Infrastructure.

Figure 3. Entrepreneurial zones by the type of activity and regional location.

Source: Unified Register of Entrepreneurial Infrastructure.

Table 1. Sample, n = 532.

Entrepreneurial zones		%
By intensity of activation	Inactive	23.3
	In initial activation phase	19.9
	Medium active	28.0
	Fully active	16.4
	No data	12.4
By type of activity	Manufacturing-processing zone	60.9
	Logistics-distribution zone	23.1
	Mixed services zone	13.0
	No data	13.0
By size	Micro	43.6
	Small	41.4
	Medium	7.9
	Large	6.6
	No data	0.4
By county	Bjelovar-Bilogora	3.6
	Brod-Posavina	4.7
	Dubrovnik-Neretva	3.8
	Istria	10.0
	Karlovac	4.1
	Koprivnica-Križevci	3.2
	Krapina-Zagorje	4.3
	Lika-Senj	2.8
	Međimurje	8.7
	Osijek-Baranja	8.5
	Požega-Slavonia	2.1
	Primorje-Gorki Kotar	7.7
	Sisak-Moslavina	5.3
	Split-Dalmatia	4.5
	Šibenik-Knin	2.4
	Varaždin	4.9
	Virovitica-Podravina	4.9
	Vukovarsko-Srijem	3.0
	Zadar	7.0
	Zagreb	4.5

Source: Authors’ systematisation according to Unified Register of Entrepreneurial Infrastructure data.

Table 3. Comparison of mean values of fiscal performance indicators for local self-government units, t-test.

Variable	Group	N	Mean	p-value
Total local government revenues (HRK million)	LGUs with entrepreneurial zones	233	15.8	0.048**
	LGUs without entrepreneurial zones	321	25.3
Total local government tax revenues (HRK million)	LGUs with entrepreneurial zones	233	7.7	0.063***
	LGUs without entrepreneurial zones	321	12.7
Revenues from public utility charges (thousands HRK)	LGUs with entrepreneurial zones	233	788.8	0.793
	LGUs without entrepreneurial zones	321	836.1
Revenues from tax on company (thousands HRK)	LGUs with entrepreneurial zones	233	117.1	0.322
	LGUs without entrepreneurial zones	321	160.6
Income of local budget per capita (HRK)	LGUs with entrepreneurial zones	233	2,520.5	0.134
	LGUs without entrepreneurial zones	322	2,267.1
Expenses for non-financial assets (million HRK)	LGUs with entrepreneurial zones	233	3.6	0.006*
	LGUs without entrepreneurial zones	322	6.1

Note: *significant at the 1% level, **significant at the 5% level, ***significant at the 10% of significance.

Source: Authors’ calculation based on Ministry of Finance (2018) data.

Table 4. Comparison of mean values of socioeconomic performance indicators of local self-government units, t-test.

Variable	Group	N	Mean	p-value
Number of inhabitants	LGUs with entrepreneurial zones	233	4,080.4	0.002*
	LGUs without entrepreneurial zones	322	7,489.8
Surface area (sqkm)	LGUs with entrepreneurial zones	233	154.8	0.076***
	LGUs without entrepreneurial zones	322	76.5
Population change	LGUs with entrepreneurial zones	233	93.0	0.250
	LGUs without entrepreneurial zones	322	93.1
Ageing index	LGUs with entrepreneurial zones	233	149.7	0.000*
	LGUs without entrepreneurial zones	322	124.1
Rate of education	LGUs with entrepreneurial zones	233	12.3%	0.679
	LGUs without entrepreneurial zones	322	12.6%
Unemployment rate	LGUs with entrepreneurial zones	233	17.4%	0.134
	LGUs without entrepreneurial zones	322	18.5%
Income per capita	LGUs with entrepreneurial zones	233	25,025.1	0.000*
	LGUs without entrepreneurial zones	322	23,402.8
Development index	LGUs with entrepreneurial zones	233	98.6	0.368

Note: *significant at the 1% level, **significant at the 5% level, ***significant at the 10% level.

Source: Authors’ calculation based on Croatian Bureau of Statistics (2011).

Table 2. Descriptive statistics.

	Variable	Average
Fiscal performance	Total local government revenues (HRK)	21.263,175.9
	Total local government tax revenues (HRK)	10,628,471.0
	Revenues from public utility charges (HRK)	816,196.8
	Revenues from tax on company (HRK)	142,293.8
	Income of local budget per capita (HRK)	2,373.5
	Expenses for non-financial assets (HRK)	5.057.826,6
Socioeconomic performance	Number of inhabitants	6.058,5
	Population change	93.1
	Ageing index	134.8
	Education rate, %	12.5
	Unemployment rate, %	17.8
	Income per capita (HRK)	24,344.0
	Development index	99.4
Development of the entrepreneurial sector	Number of entrepreneurs	80.3
	Number of persons employed by the entrepreneurs	967.2
	Total entrepreneurial revenues (HRK)	510,515,795.5

Source: Authors' calculation based on Croatian Bureau of Statistics (2011), Financial Agency (2017), Ministry of Finance (2018) and Ministry of Regional Development and EU Funds (2018a and 2018b) data.

Table 5. Comparison of mean values of business performance indicators for entrepreneurs in local self-government units, t test.

Variable	Group	N	Mean	p-value
Number of entrepreneurs	LGUs with entrepreneurial zones	233	66.0	0.083***
	LGUs without entrepreneurial zones	322	108.5
Total entrepreneurial revenues (HRK million)	LGUs with entrepreneurial zones	233	309.6	0.013**
	LGUs without entrepreneurial zones	322	655.9
Number of persons employed by the entrepreneurs	LGUs with entrepreneurial zones	233	611.1	0.018**
	LGUs without entrepreneurial zones	322	1,224.9

Note: *significant at the 1% level, **significant at the 5% level, ***significant at the 10% of significance.

Source: Authors’ calculation based on Financial Agency (2017) data.

Table A1. Data source.

	Variable	Definition	Source	Time range
Fiscal performance	Total local government revenues	Total annual revenues of local self-government units.	Ministry of Finance	2008–2016
	Total local government tax revenues	Total annual tax revenues of local self-government units.	Ministry of Finance	Average 2008–2016
	Revenues from public utility charges	Local budgetary revenues which are paid for the construction and use of facilities and equipment of public utility infrastructure: public areas, unclassified roads, cemeteries and crematoriums, and public lighting. They are revenues of local self-government units and are paid by the owner of the building plot on which the construction work is built, or by the investor respectively.	Ministry of Finance	Average 2008–2016
	Revenues from tax on company	The own source of revenues of local government units. It is abolished in 2017.	Ministry of Finance	Average 2008–2016
	Income of local budget per capita	Budget revenues of local self-government units per capita are calculated as the ratio of income realised by local self-government units, reduced by income: from domestic and foreign aid and donations, as well as fiscal equalisation funds; receipts derived pursuant to special contracts: co-financing of citizens for local self-government; additional share in income tax, equalisation grants for the decentralised functions; disposal of non-financial assets and divided by number of inhabitants in the area of local self-government unit.	Ministry of Finance	Average 2008–2016
	Expenses for non-financial assets	Expenses for non-produced non-financial assets, produced fixed asset, precious metals and other stored values, inventories and other additional investments in non-financial assets.	Ministry of Finance	Average 2008–2016
Socio-economic performance	Number of inhabitants	Number of inhabitants according to 2011 Census.	Croatian Bureau of Statistics	2011
	Population change	Change of number of inhabitants in relation to the base period.	Ministry of Regional Development and EU Funds	2016/2006
	Ageing index	Share of the inhabitants aged 60 and over in the number of inhabitants younger than 19.	Ministry of Regional Development and EU Funds	2011
	Rate of education	The share of population with tertiary education in total population aged 24 – 64.	Ministry of Regional Development and EU Funds	2011
	Unemployment rate	The share of unemployed persons in total active population in the local unit.	Ministry of Regional Development and EU Funds	Average 2014–2016
	Income per capita	The ratio of income earned by taxpayers in the local self-government units and the number of inhabitants living in the local government units.	Ministry of Regional Development and EU Funds	Average 2014–2016
	Development index	Composite indicator calculated as average of several socio-economic indicators: unemployment rate, income per capita, income of local/regional budget per capita, population change, rate of education.	Ministry of Regional Development and EU Funds	Average 2014–2016
Development of the entrepreneurial sector	Entrepreneurship	Total number of legal entities registered in local unit.	Financial agency (Fina)	Average 2008–2016
	Entrepreneurial revenue per employee	Average per capita revenue of all enterprises in the local unit divided by the average number of employees in all enterprises registered in the local unit.	Financial agency (Fina)	Average 2008–2016
	Total entrepreneurial revenues	Total operating revenues of all enterprises in the local unit.	Financial agency (Fina)	Average 2008–2016

Source: Authors' systematisation.

Ministry of Finance. (2018). Local and regional budgets for the 2014–2016 period, database. Retrieved from http://www.mfin.hr/hr/ostvarenje-proracuna-jlprs-za-period-2014-2017

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Croatian Bureau of Statistics. Census 2011. Retrieved from https://www.dzs.hr/Hrv_Eng/publication/2012/SI-468.pdf

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Financial Agency. (2017). Annual financial report of entrepreneurs for 2004–2016 period, database. Zagreb.

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Ministry of Regional Development and EU Funds. (2018a). Decision on classification of local and regional self-government units according to the level of development, Official Gazette 132/2017, Zagreb.

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Ministry of Regional Development and EU Funds. (2018b). Values of development index and indicators for calculation of development index according to new model of calculation at the local level (2014–2016 period). Zagreb.

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