engleski

The analysis of the competitiveness of the Republic of Croatia

The purpose of this paper is to describe and explain the method and the importance of measuring and determining the competitiveness of national economies. This paper will present the situation of Croatian competitiveness compared to other European countries. The goal is to determine areas in which Republic of Croatia lags most and in which areas are potentials for development and increase of competitiveness. The great importance for small economies are their degree of openness, therefore the participation in international trade. As the national economy is more open and with the increase of the level of imports and exports, it is more foreign competition in the domestic market, which leads to higher inflows of innovation. Also, domestic enterprises are being forced to introduce new technologies and modern achievements in their business in order to remain competitive, which raises the level of the competitiveness of the entire national economy. The growth of the competitiveness of a country has multiple effects on its economic growth and development. According to analyzed indicators of competitiveness (the global competitiveness indeks and the human development index) it's encouraging that position of Republic of Croatia in relation to comparable countires is generally improving. However, changes are needed in the area of labor market reforms, macroeconomic environment, a stronger stimulation of foreign investment, education, and innovation and new technologies should become priorities to government and business policy. For the Republic of Croatia, as economically small country, the growth of competitiveness is of a great importance, because this helps not only faster economic growth and new employment, but also indirectly reduce poverty, social inequality and increase social inclusion of population.

competitiveness; Republic of Croatia; indices measuring competitiveness

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