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TENDENCIES OF POVERTY IN THE REPUBLIC OF CROATIA AND THE EU COUNTRIES
Abstract
The objective of this paper is to determine the tendencies of poverty in the Republic of Croatia and the EU counties. The methodology included the measurement of poverty with the official EU poverty line. Material deprivation rate used by EU Member States is also used in the paper. Regression analysis (OLS method) was used to establish to what extent poverty risk rate can be reduced by increase in income. The main research result indicates that poverty in Croatia is increasing. Its increase has been particularly pronounced since 2008, when Croatia recorded the highest increase in the poverty rate among the EU Member States. Although Croatia is classified on a global scale as the high income country, the basic conclusion is that according to poverty rate, it could not be classified as high developed country and that poverty risk rate can be reduced by an increase in income.
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