Economic Growth and Regional Disparities in the Slovak Republic

Biswajit Banerjee and Mariusz Jarmuzek

Comparative Economic Studies, 2010, vol. 52, issue 3, 379-403

Abstract: This paper finds that regional disparities have widened in Slovakia since 2000. Notwithstanding σ-divergence in the levels, there was conditional β-convergence in the growth rates of GDP per capita and labor productivity. Improvements in total factor productivity, mostly due to within-sector effects, were the main engine of growth of GDP in all regions. Sustaining growth and reducing disparities will require increasing labor utilization and improving the structural and policy determinants of productivity in the eastern regions. The main policy priorities are to improve transportation infrastructure, enhance cost competitiveness, and increase accumulation of human capital.

Date: 2010
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