Studies on the finance-growth link use different proxy variables for financial development. Among the most used is the total credit share in the GDP. Previous empirical studies show to be sensitive to the choice of the finance proxy indicator. Total credit share in the GDP appears biased in...

The paper starts from the point of view of the necessity of taking into account two groups of factors of general growth in the process of revival in the Republic of Croatia. First, these are material factors of development, as assets assigned to investment, capital goods and foreign assistance....