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THE MEASUREMENT OF PSYCHIC DISTANCE: CASE OF FOREIGN INVESTORS IN SLOVENIA

100%
Festic M., Repina S., Krizanic F.
Ekonomický časopis (Journal of Economics)
|
2009
|
vol. 57
|
issue 10
963 – 979
EN
The article contributes to the existing empirical evidence on the impact of the macroeconomic environment on retail prices dynamics by using panel estimates to explain inflation in Slovenia after the introduction of the euro. The authors evaluated the impact of diesel fuel prices, food prices on the world market, GDP, the bank loans to the private sector, import prices, the earnings of major merchants and the production prices for retail prices of alimentary products. The earnings of major merchants, import prices and GDP growth contributed significantly to the incline of the retail prices in the first observed period. While, the results of the empirical analysis state that the cause of increased incline of the retail prices of alimentary products after May 2007 can be attributed, mostly to the earnings of major merchants, volume of credit, world food prices, the price of diesel fuel and import prices. The impact of producers' prices was insignificant in both observed periods.
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