engleski

A production function explanation of Croatia economic growth 1966-1990

This paper provides a attempt at an explanation of Croatia economic growth along the lines proposed by the neo-classical growth theory. Production function estimates for gross domestic product are provided using Cobb-Douglas. A econometric testing is employed to investigate the long-run property of the estimated equation, and functional form is estimated using a constant of technical progress, and under the assumption of constant returns to scale. The result shows an elasticity of output with respect to labour and capital of about - 0.21 and 0.71 respectively.

Cobb-Douglas production function; elasticity of substitution; technical change

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