engleski

Empirical analysis of public debt and credit activity impact on economic growth in the Republic of Croatia

The aim of this paper is to identify debt forms that have a significant impact on GDP trends in the Republic of Croatia and to determine to what extent and in which direction certain forms affect GDP. A multiple linear regression model for the period 2005-2018 has been developed to answer the question of the impact on GDP of increasing or decreasing public and foreign debt and loans to households and companies. The results of the research indicate a strong positive correlation between GDP and loans to households and a negative correlation between GDP and public debt. The variable of loans granted to companies is not significant in the model. The results of the research indicate the necessity of a change in fiscal policy in the direction of using debt in the function of financing capital investments as the foundation of technological progress, productivity growth and related economic growth.

economic growth ; GDP ; regression analysis ; debt

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