engleski

Human Capital in Growth Accounting: The Case of Croatia

In this paper we investigate relative importance of growth factors in Croatia during 1968-2008. Growth accounting methodology is employed in order to estimate relative importance of human capital on growth rates of Croatia. This work stems from previous estimates of initial capital levels, pre-transition GDP per capita and two estimates of human capital in Croatia. The analysis is interesting on two fronts: first, it investigates relative importance of human capital ; second, it allows us to compare relative importance of accumulation of production factors and total factor productivity (TFP) growth before and after transition. Our results suggest that human and physical capital were dominant and equally important during the entire period, with negative contribution of TFP before 1990 and increased role of TFP and human capital after the 1997.

economic growth; human capital; growth accounting; transition

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