Growing Together: Croatia and Latvia

33 Pages Posted: 24 May 2011  

Thorvaldur Gylfason

University of Iceland - Faculty of Economics and Business Administration; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Eduard Hochreiter

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: June 2011

Abstract

We compare and contrast the economic growth performance of Croatia and Latvia since the collapse of communism in 1991, in an attempt to understand better the extent to which the output growth differential between the two countries can be traced to increased efficiency in the use of capital and other resources (intensive growth) as opposed to sheer accumulation of capital (extensive growth). On the basis of a simple growth accounting model, we infer that advances in education at all levels, good governance, and institutional reforms have played a significant role in raising economic output and efficiency in both Croatia and Latvia. The EU perspective seems to have made a more significant contribution to growth in Latvia than in Croatia, even if Latvia's immediate post-accession boom proved unsustainable.

Suggested Citation

Gylfason, Thorvaldur and Hochreiter, Eduard, Growing Together: Croatia and Latvia (June 2011). Comparative Economic Studies, Vol. 53, Issue 2, pp. 165-197, 2011. Available at SSRN: https://ssrn.com/abstract=1851226 or http://dx.doi.org/10.1057/ces.2011.4

Thorvaldur Gylfason (Contact Author)

University of Iceland - Faculty of Economics and Business Administration ( email )

IS-101 Reykjavik
Iceland
+354 525 4533/00 (Phone)
+354 552 6806 (Fax)

HOME PAGE: http://www.hi.is/~gylfason/inenglish.htm)

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Eduard H. Hochreiter

affiliation not provided to SSRN

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