IP-2019-04-4500 Analysis of structural factors of convergence of Croatia during the transition process

Grant holder: University of Zagreb, Faculty of Economics and Business
Duration:  February 20, 2020 – February 19, 2024
EIZ member: Goran Buturac
Existing research validates the empirical fact that Croatia has been relatively lagging its surroundings for the past 27 years, even almost 40 years. With the exception of some general ideological critiques of the economic state and development, economic research did not focus on determining the key causes of the aforementioned lag. The goal of this research is to find the key causes to explain the success/failure of transitional economies in the context of growth theories, structural changes, labor market, capital market, and sectoral analysis. The main outcomes of the research should supply the basis for a factual debate about the solutions to the accumulated development issues of the Croatian economy. The main effect of this research should be to shed light on the differences between Croatia and other transitional economies accumulated during the last 30 years of transition, to the correlation and causality between the specifics of the Croatian development, the macroeconomic aggregates, and the relative economic lag. The expected scientific results are up to 11 research papers (depending on recension duration) published in journals with a citation in WoS or Scopus bases; 1 book chapter published by a reputable international publisher; 4 national and 11 international presentations at relevant conferences. To maximize chances of publishing in upper quartile journals the methodological focus shall be sophisticated econometric methods (PVAR, spatial econometrics, log-t convergence tests, dynamic threshold panel models, etc.), therefore we plan to organize 2 econometrics workshops by reputable international panel econometrics and time series econometrics experts. The closing conference and a HAZU result presentation conference are planned for the final project year. 
Web page: https://convrh.net.efzg.hr/po%C4%8Detna-stranica