engleski

Growth when inputs are even more scarce : the example of Croatian information and communications technologies sector

In this paper authors try to find alternatives for growth in the situation of expensive capital, stagnating labour force and rather unfavourable institutional environment as it is the case in Croatia. Based on the neoclassical production function, it is assumed that Croatia should trigger human capital growth, since it is more easily and faster acquired than any other input in times of crises. Information and communications technologies sector is chosen for further analyses because of its human capital intensiveness. It is discovered that the investments in the ICT sector in 120 times more productive than investments in the rest of the economy, as well as the newly graduated student of electrical engineering, mathematics and computer sciences, which are main resources of the ICT sector, yield 2, 6 times greater returns than the rest of the newly graduated students. Although ICT sector declines in the recent crisis, government should divert the assets form the least effective to the ICT sector.

Cobb-Douglas production function; growth in crisis; management in crisis; ICT sector; human capital; scarce resources; total factor productivity; efficiency; institutions

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