Analysis of the Nature of Economic Growth of Slovenian Economy

Abstract

The aim of this article is to outline the economic growth for the Slovenian economy between 1992--2001. Our major interest is the nature of the past growth. Was it intensive or extensive? On the basis of four groups of different arguments we were expecting that there would be a predominantly extensive economic growth. In order to answer this question we developed an empirical study, which follows the conventional neo-classical growth accounting framework. First we estimated three mathematical specifications of aggregate production functions. The analysis was than conducted through an econometric analysis of these estimates. Using these results we developed the growth accounting equation, which allowed us to compute the contributions of each particular input (physical capital, human capital and technical progress) to output growth. On base of our received empirical results we are able to state, that the past economic growth of the Slovenian economy was significantly extensive.