Assessment of the efficiency of Croatia compared to other European countries using data envelopment analysis with application of window analysis

Abstract

Economic growth in the world today is extremely uneven. In the last decade we have witnessed a higher growth rates in industrial countries and in countries in transition. However, their growth is mostly based on external borrowing, creating a problem of higher external debt and budget deficit. As the growth rate of external debt exceeds the one of GDP, in the long run, countries will face problems of indebtedness and unsustainable growth. This paper analyses the model of economic growth in three different years in order to determine the significant growth factors in Croatia and EU countries plus Turkey and Switzerland. Countries that have applied efficient growth model and those that have not are distinguished using the data envelopment analysis (DEA). According to obtained results Croatia had the worst ranking in the achieved efficiency.