Testing the growth links of emerging economies: Croatia in a growing world economy

Research output: Working paper / PreprintWorking paper


We estimate a dynamic simultaneous equation model for 16 variables of the Croatian economy in order to test the links of growth with education, R&D, trade, savings and FDI. In order to motivate the choice of variables we review the related theories of growth and look at the relevant data. Permanent shocks increasing the intercepts of the equations for education, R&D, trade, savings and FDI show that most of growth links work well in Croatia, but they also enhance foreign imbalances. Policies to balance the two aspects are briefly discussed.
Original languageEnglish
Place of PublicationMaastricht
Number of pages33
Publication statusPublished - 2017

Publication series

SeriesUNU-MERIT Working Papers

JEL classifications

  • f43 - Economic Growth of Open Economies
  • o11 - Macroeconomic Analyses of Economic Development
  • o19 - "International Linkages to Development; Role of International Organizations"
  • o41 - One, Two, and Multisector Growth Models
  • o47 - "Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence"


  • growth
  • open economy
  • education
  • R&D
  • Croatia

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