<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This article examines how the large shock in emigration following Croatia’s accession to the European Union affected local public finances. To do so, a difference in differences research design has been used on a balanced panel dataset of municipality level observations over a ten-year period. The areas that experienced the largest emigration in the post 2014 period saw a large negative decrease in total tax revenue over the subsequent years, mainly driven by income tax revenue decrease. The results of this research warn that large emigration flows can lead to a cycle of economic degeneration as local areas lose fiscal revenue to spend on local services, in turn making them less likely to attract citizens.</p>
</abstract>

This article examines how the large shock in emigration following Croatia’s accession to the European Union affected local public finances. To do so, a difference in differences research design has been used on a balanced panel dataset of municipality level observations over a ten-year period. The areas that experienced the largest emigration in the post 2014 period saw a large negative decrease in total tax revenue over the subsequent years, mainly driven by income tax revenue decrease. The results of this research warn that large emigration flows can lead to a cycle of economic degeneration as local areas lose fiscal revenue to spend on local services, in turn making them less likely to attract citizens.

The Fiscal Consequences of Emigration: Evidence from Croatia

Department of Politics and International Relations

Zagreb International Review of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"The Fiscal Consequences of Emigration: Evidence from Croatia"}

This article examines how the large shock in emigration following Croatia’s accession to the European Union affected local public finances. To do so, a...

The Fiscal Consequences of Emigration: Evidence from Croatia

Published Online: Dec 06, 2023

Page range: 183 - 202

DOI: https://doi.org/10.2478/zireb-2023-0020

Keywords
Croatia, Migration, Local Public Finance, Difference in Differences Design

© 2023 Ria Ivandić, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The Fiscal Consequences of Emigration: Evidence from Croatia

Published Online: Dec 06, 2023

Page range: 183 - 202

DOI: https://doi.org/10.2478/zireb-2023-0020

KeywordsCroatia, Migration, Local Public Finance, Difference in Differences Design

© 2023 Ria Ivandić, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
Croatia, Migration, Local Public Finance, Difference in Differences Design