ECONOMIC GROWTH AND THE PERSPECTIVES OF TRANSITIONAL COUNTRIES

We have analized functional relationship and empirical regularities of economic growth for EU countries in the period 1973-1997. The proposition of convergence is confirmed. That is: poor countries grow faster than rich countries, and tend to catch up them. We have specified functional relationship between fertility rate and per capita income for developed EU countries and transitional countries. It is also made a comparison between growing levels of Croatia and less developed EU countries on the base of S-distances and static percentage differences. How to eliminate the large gap? It is specific way for each country. Generally is known that tendency for low – income countries to grow at high rates is rein-forced by international mobility of capital and technology. A follower country with more human capital tends to grow faster because it catches up more rapidly to the technological leader.