The Determinants of Long Term GDP Growth in Croatia
In this paper we take a deeper look into the reasons for relatively weak performance of Croatian economy from the start of the transition period to the present. Thereby we split the analysis in two parts. In the first part we focus on comparative approach in order to ascertain the trends in income convergence process of Croatian economy in comparison to other new EU member states. In the second part of the analysis we focus on supply side determinants of GDP growth in order to isolate possible causes for weak economic performance. Namely, we analyze the main features of gross value added created by various economic sectors in Croatia in the period from 1995 to 2015. We are primarily interested in changes in contribution of various economic sectors to overall gross value added created in the economy, which facilitates the assessment of the changes in the sectoral structure over time and their impact on the overall economic performance..
Index Terms - GDP, Long term growth, determinants, transition economy.