Sources of productivity growth in Eastern Europe and Russia before the global financial crisis

Ilya Voskoboynikov

Journal of Productivity Analysis, 2023, vol. 59, issue 3, No 2, 225-241

Abstract: Abstract This paper shows that the industrial origins of productivity growth in Czechia, Hungary, and Slovenia (CEE-3) and Russia before 2008 were similar and driven by manufacturing industries. The contribution of manufacturing industries to multifactor productivity (MFP) growth is substantial. In CEE-3, it exceeded market services. The contribution of labor reallocation to labor productivity growth was modest and did not surpass one quarter of the aggregate labor productivity growth. Finally, industries demonstrate a strong beta-convergence of MFP. The speed of convergence is higher in manufacturing industries than in market services.

Keywords: Transitional economies; Productivity; Industrial growth accounting; Level accounting; Structural change; O47; L16; P27 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s11123-023-00662-7

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