THE DETERMINANTS OF ECONOMIC GROWTH IN HUNGARY, POLAND, SLOVAKIA AND THE CZECH REPUBLIC IN THE YEARS 1995-2010

Katarzyna Baran ()
Additional contact information
Katarzyna Baran: Technische Universität Darmstadt, Germany

Equilibrium. Quarterly Journal of Economics and Economic Policy, 2013, vol. 8, issue 3, 7-26

Abstract: The main goal of the research is to obtain a comprehensive examination of the economic growth determinants in Hungary, Poland, Slovakia and the Czech Republic (CEEC-4) since 1995. For this purpose, two methodological approaches have been applied: the Solow growth accounting and the non-parametric approach. At the beginning of the analysis, in order to obtain a general overview of the sources of economic growth in the former transition countries of Central Eastern Europe, the Solow growth accounting has been conducted. It decomposes the growth rate of output into contributions from changes in the quantity of the physical capital stock, the amount of labour input and some other unexplained factor commonly interpreted as reflecting technological progress and called the “Solow residual” or “Total Factor Productivity (TFP)”. The hypothesis that technological progress together with strong capital accumulation were the dominant factors behind the economic growth and convergence process in the Central Eastern European countries before the crisis is tested. As the Solow growth accounting does not reveal the driving forces behind the technological progress and, thus, a large part of the growth decomposition remains unexplained in the transition economies, the non-parametric approach has been employed to shed more light on the ultimate sources of economic growth in the CEEC-4. The non-parametric (production-frontier) method enables the further decomposition of changes in total factor productivity into changes in the efficiency of production and technological changes. Furthermore, it allows accounting for human capital accumulation, since improvements in quality of labour are also reflected in TFP growth.

Keywords: determinants of economic growth; transition economies of Central Eastern Europe; Sollow growth accounting; non-parametric growth accounting (search for similar items in EconPapers)
JEL-codes: I25 O11 O30 O47 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://dx.doi.org/10.12775/EQUIL.2013.017 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pes:ierequ:v:8:y:2013:i:3:p:7-26

Access Statistics for this article

Equilibrium. Quarterly Journal of Economics and Economic Policy is currently edited by Adam P. Balcerzak

More articles in Equilibrium. Quarterly Journal of Economics and Economic Policy from Institute of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Adam P. Balcerzak ( this e-mail address is bad, please contact ).