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Economic Thought and Practice, Vol. 26 No. 1, 2017.

Review article

STRUCTURAL CHANGE IN CROATIAN REAL GDP GROWTH RATES

Mile Bošnjak orcid id orcid.org/0000-0002-7663-198X ; Faculty of Economics and Business Department of International Economics, University of Zagreb

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Abstract

Markov switching model captures the sudden changes in the observed series using exogenous variable which is unobserved and follows a stochastic process. This research fits Markov switching model to quarterly real GDP growth rates in Croatia for the period 2000:1 to 2016:2 in order to analyze changes in mean over time.Research results show that Croatian GDP growth rates are regime dependent. Markov switching model with two regimes detects shifts in Croatian GDP growth rates. Consistently with the previous similar researches, the research results indicate long lasting recession period and sluggish Croatian economy.

Keywords

Markov model; regimes; GDP; Croatia

Hrčak ID:

183558

URI

https://hrcak.srce.hr/183558

Publication date:

29.6.2017.

Article data in other languages: croatian

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