## Economic Growth in Croatia: Potential and Constraints

_IMF Working Papers, August 1, 2007_

## Source details

**Canonical URL:** [Economic Growth in Croatia: Potential and Constraints](https://www.imf.org/en/publications/wp/issues/2016/12/31/economic-growth-in-croatia-potential-and-constraints-21237)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/economic-growth-in-croatia-potential-and-constraints-21237/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/economic-growth-in-croatia-potential-and-constraints-21237/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/31/economic-growth-in-croatia-potential-and-constraints-21237/bundle-manifest.json)

## Bibliographic details
- Authors: David Moore, Athanasios Vamvakidis
- Published: August 1, 2007
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451867626.001

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### 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.*

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## Content in this bundle

- **1.   Croatia: Potential Real GDP Growth**
  - [1.   Croatia: Potential Real GDP Growth (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2007/_wp07198.pdf.md){rel="alternate" type="text/markdown"}
  - [1.   Croatia: Potential Real GDP Growth (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2007/_wp07198.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/economic-growth-in-croatia-potential-and-constraints-21237_