Economic Growth in Croatia: Potential and Constraints

 
Author/Editor: Moore, David ; Vamvakidis, Athanasios
 
Publication Date: August 01, 2007
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper examines the factors and constraints that affect recent and potential growth in Croatia, as well as policies that can influence it. On current productivity trends, it estimates Croatia's potential growth rate at 4-4½ percent, a result reasonably robust to different methodologies. To sustain growth at a higher rate in line with the authorities' aspirations, the analysis highlights the critical need to improve the business environment through further measures to reduce the administrative burden, legal uncertainties, and corruption. It also emphasizes the importance of attracting more greenfield foreign direct investment, and reforms to reduce the role of the state in the economy through fiscal consolidation and faster privatization.
 
Series: Working Paper No. 07/198
Subject(s): Economic growth | Croatia | Privatization | Foreign direct investment | Economic reforms

Author's Keyword(s): Economic growth | economic reform | potential growth
 
English
Publication Date: August 01, 2007
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2007198 Pages: 36
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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