engleski

The European integration and economic growth

The purpose of the present study is to evaluate econometrically and to detect long run effects of European economic integration. The aim was to investigate phenomenon empirically. The analysis is conducted on OECD and EU15 countries and a time period from 1960 or 1973 to 1997. A country per capita growth rate is inversely related to its starting level of income per person. In neoclassical growth models, this hypothesis is inconsistent with our EU15 cross-country empirical evidence, where average growth of per capita real GDP from 1960 to 1997 is not significantly related to the 1960 value of real per capita GDP. Our empirical analysis supports a modyfied hypothesis of neoclassical growth models that a poor country tends to grow faster than rich country but only for a given quantity of human capital. Which are the perspectives and expectations of Croatia's European integration? As a lower income country, with available quantity of human capital, counting on international mobility of capital and technology, Croatia should find her place in the new economy of knowledge and services. As a some studies suggest, the further regional integration through launching of the internal market program can be growth enhancing in the long run. It is very important for Croatia to catch, as soon as possible, the role in it.

economic growth; European integration; European Union; human capital

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