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Preliminary results of research on economic growth barriers presented

ZAGREB, Sept 29 (Hina) - The main barriers to Croatia's economic growth are an inefficient spending of public funds, poor quality of entrepreneurial activities and inadequate education of labour force, according to preliminary findings of a research on obstacles to economic growth.

The research, financed by the Croatian Employers' Association (HUP), is being conducted by 17 researchers and lecturers at business and economics schools and colleges and economics institutes in Zagreb, Osijek and Split.

The analysis is divided into four fields: the state, labour market, entrepreneurship and openness.

As for the state, preliminary results show that the key problem lies in the inefficient spending of funds in the schooling system, public health-care, public institutions and public administration agencies rather than in the share of public spending in Gross Domestic Product.

As for entrepreneurship, the problem lies in the quality of entrepreneurial activities rather than in the intensity of those activities.

As for the labour market, the problem lies in discrepancies between workforce skills and skills demanded by employers.

With regard to openness, the banking and commercial sectors are more open than the manufacturing sector.

The comprehensive results of the research will be presented in two months' time.

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