Economic Growth in Croatia: Potential and Constraints
IMF Working Papers, August 1, 2007
Source details
- Canonical URL
- Economic Growth in Croatia: Potential and Constraints
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Bibliographic details
- Authors: David Moore, Athanasios Vamvakidis
- Published: August 1, 2007
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451867626.001
Major findings
- Estimates Croatia's potential growth rate at 4-4½ percent on current productivity trends; this result is described as reasonably robust to different methodologies.
- Recent and potential growth are affected by a set of factors and constraints examined in the paper, including the business environment, foreign direct investment, and the role of the state in the economy.
- Emphasis on the need to attract more greenfield foreign direct investment to strengthen the export base and support higher growth.
- Identifies administrative burden, legal uncertainties, and corruption as critical impediments to business activity and productivity growth.
- Highlights the importance of reducing the role of the state in the economy to support higher growth outcomes.
Policy recommendations and reform priorities
- Improve the business environment through further measures to reduce:
- administrative burden
- legal uncertainties
- corruption
- Attract more greenfield foreign direct investment.
- Implement reforms to reduce the role of the state in the economy through:
- fiscal consolidation
- faster privatization
Thematic coverage and keywords
- Subject areas: Balance of payments; Business environment; Economic sectors; Foreign direct investment; Labor; Macrostructural analysis; Production; Structural reforms; Total factor productivity
- Keywords: Business environment; Croatia's rank; EBRD indices; economic growth in Croatia; Europe; export base; Foreign direct investment; innovation in Croatia; reform progress; Structural reforms; Total factor productivity; transition rank; WP
Source: IMF Working Paper "Economic Growth in Croatia: Potential and Constraints" by David Moore and Athanasios Vamvakidis, August 1, 2007.
Content in this bundle
- 1. Croatia: Potential Real GDP Growth