IDEAS home Printed from https://ideas.repec.org/a/nwe/eajour/y2016i2p159-174.html
   My bibliography  Save this article

Supply-Side Factors of Economic Growth in Bulgaria

Author

Listed:
  • Ivan Todorov

    (South-West University "Neofit Rilski", Bulgaria)

Abstract

The present article discusses five equilibrium approaches to estimating elasticities in Bulgaria’s aggregate production function. The study has two objectives: first, to identify the best equilibrium approach to determining elasticity in Bulgaria’s aggregate production function; and second, to measure quantitatively the contributions of capital, labor and total factor productivity to Bulgaria’s economic growth under a currency board arrangement (CBA). An econometric procedure - ordinary least squares (OLS) estimation of Bulgaria’s aggregate production function with annual and quarterly data - has been used to select the best equilibrium approach to determining elasticities in this function. The OLS estimation has demonstrated that the first equilibrium approach, which is based on the final expenditure structure of Bulgaria’s gross domestic product (GDP), provides the most reliable results of all five equilibrium approaches. The second objective of the research has been accomplished by applying the growth accounting (GA) technique to Bulgaria for the period 1997-2013. The GA results imply total factor productivity and capital stock have been the main supply-side determinants of Bulgaria’s economic growth under a CBA, while employment has had an insignificant negative impact on growth.

Suggested Citation

  • Ivan Todorov, 2016. "Supply-Side Factors of Economic Growth in Bulgaria," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 159-174, June.
    • Handle: RePEc:nwe:eajour:y:2016:i:2:p:159-174
    as

    Download full text from publisher

    File URL: http://www.unwe.bg/uploads/Alternatives/Todorov_4_ALTERNATIVI_br2_2016-en.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Patonov Nikolay Andonov, 2013. "Searching for A Restraint on the European Leviathan," Scientific Annals of Economics and Business, Sciendo, vol. 60(2), pages 1-16, December.
    2. Alan B. Krueger, 1999. "Measuring Labor's Share," American Economic Review, American Economic Association, vol. 89(2), pages 45-51, May.
    3. José A. Hernández & Ignacio Mauleón, 2002. "Estimating the Capital Stock," Documentos de trabajo conjunto ULL-ULPGC 2002-03, Facultad de Ciencias Económicas de la ULPGC.
    4. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    5. Garabed Minassian, 2008. "Is Bulgarian Economy Overheating?," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 21-46.
    6. Robert E. Hall & Charles I. Jones, "undated". "The Productivity of Nations," Working Papers 96012, Stanford University, Department of Economics.
    7. Cororaton, Caesar B., 2002. "Total Factor Productivity in the Philippines," Discussion Papers DP 2002-01, Philippine Institute for Development Studies.
    8. Todorov Ivan Krumov, 2014. "Macroeconomic Trends in the New Member Countries of the European Union Before the Euro Area Debt Crisis," Scientific Annals of Economics and Business, Sciendo, vol. 61(2), pages 197-217, December.
    9. Abdelhak Senhadji, 2000. "Sources of Economic Growth: An Extensive Growth Accounting Exercise," IMF Staff Papers, Palgrave Macmillan, vol. 47(1), pages 1-6.
    10. Alan Krueger, 1999. "Measuring Labor's Share," Working Papers 792, Princeton University, Department of Economics, Industrial Relations Section..
    11. Moses Abramovitz, 1956. "Resource and Output Trends in the United States since 1870," NBER Books, National Bureau of Economic Research, Inc, number abra56-1, May.
    12. Moses Abramovitz, 1956. "Resource and Output Trends in the United States since 1870," NBER Chapters, in: Resource and Output Trends in the United States since 1870, pages 1-23, National Bureau of Economic Research, Inc.
    13. repec:fth:prinin:413 is not listed on IDEAS
    14. Desislava Stoilova, 2010. "Financial Decentralization And The Downturn: Evidence From Bulgaria," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 57, pages 261-274, november.
    15. Kaloyan Ganev, 2005. "Measuring Total Factor Productivity: Growth Accounting for Bulgaria," GE, Growth, Math methods 0504004, University Library of Munich, Germany, revised 21 Apr 2005.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cătălina MOTOFEI, 2017. "Vectors of economic growth in the eastern area of the EU," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(610), S), pages 215-226, Spring.
    2. Kalina Durova, 2018. "Long-Term Impact of the European Funds on Bulgaria's Economy," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 325-333, September.
    3. Cătălina MOTOFEI, 2017. "Vectors of economic growth in the eastern area of the EU," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(610), S), pages 215-226, Spring.
    4. Goce Petreski & Darko Lazarov, 2017. "Drivers of Economic Growth: A Comparative Analysis of Macedonia and Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 3-16.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zoran Boroviæ & Mladen Rebiæ & Dalibor Tomaš, 2020. "Total factor productivity drivers in the selected EU countries: Cointegration approach," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(1), pages 295-315.
    2. Michaelides, Panayotis & Milios, John, 2009. "TFP change, output gap and inflation in the Russian Federation (1994-2006)," Journal of Economics and Business, Elsevier, vol. 61(4), pages 339-352, July.
    3. Jones, C.I., 2016. "The Facts of Economic Growth," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 3-69, Elsevier.
    4. Krüger Jens J. & Cantner Uwe & Hanusch Horst, 2003. "Explaining International Productivity Differences / Erklärung internationaler Produktivitätsunterschiede," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 223(6), pages 659-679, December.
    5. Jens Krueger & Uwe Cantner & Horst Hanusch, 1998. "Explaining International Productivity Differences," Discussion Paper Series 179, Universitaet Augsburg, Institute for Economics.
    6. Munusamy, Subramaniam & Rajamoorthy, Yogambigai, 2020. "Factor Accumulation and Total Factor Productivity Growth: ASEAN Economies," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(2), pages 67-76.
    7. Temple, Jonathan, 2001. "Structural Change and Europe's Golden Age," CEPR Discussion Papers 2861, C.E.P.R. Discussion Papers.
    8. Kaloyan Ganev, 2005. "Measuring Total Factor Productivity: Growth Accounting for Bulgaria," GE, Growth, Math methods 0504004, University Library of Munich, Germany, revised 21 Apr 2005.
    9. William Easterly & Ross Levine, 2002. "It´s Not Factor Accumulation: Stylized Facts and Growth Models," Central Banking, Analysis, and Economic Policies Book Series, in: Norman Loayza & Raimundo Soto & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Editor) (ed.),Economic Growth: Sources, Trends, and Cycles, edition 1, volume 6, chapter 3, pages 061-114, Central Bank of Chile.
    10. Scott L. Baier & Gerald P. Dwyer & Robert Tamura, 2006. "How Important are Capital and Total Factor Productivity for Economic Growth?," Economic Inquiry, Western Economic Association International, vol. 44(1), pages 23-49, January.
    11. Chong-En Bai & Qiong Zhang, 2017. "Is the People's Republic of China's current slowdown a cyclical downturn or a long-term trend? A productivity-based analysis," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 22(1), pages 29-46, January.
    12. Regev, Tali & Zoabi, Hosny, 2014. "Talent Utilization And Search For The Appropriate Technology," Macroeconomic Dynamics, Cambridge University Press, vol. 18(4), pages 863-882, June.
    13. Zoabi, Hosny, 2006. "Talent Utilization, a Source of Bias in Measuring TFP," Foerder Institute for Economic Research Working Papers 275735, Tel-Aviv University > Foerder Institute for Economic Research.
    14. Gelb, Alan & Meyer, Christian J. & Ramachandran, Vijaya, 2014. "Development as diffusion: Manufacturing productivity and sub-Saharan Africa's missing middle," WIDER Working Paper Series 042, World Institute for Development Economic Research (UNU-WIDER).
    15. Chad Turner & Robert Tamura & Sean Mulholland, 2013. "How important are human capital, physical capital and total factor productivity for determining state economic growth in the United States, 1840–2000?," Journal of Economic Growth, Springer, vol. 18(4), pages 319-371, December.
    16. Milenko Popovic, 2007. "Rising Wage Inequality, Rate Of Return On Investment In Education, And Cost Of Education," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 3(5), pages 35-58.
    17. Meyer, Dietmar, 1995. "Az új növekedéselmélet [The new theory of growth]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 387-398.
    18. Massimo Del Gatto & Adriana Di Liberto & Carmelo Petraglia, 2011. "Measuring Productivity," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 952-1008, December.
    19. Hernando Zuleta & antiago Alberico, 2007. "Labor supply, biased technological change and economic growth," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 25(53), pages 260-286, January.
    20. Van Elk, Roel & Verspagen, Bart & Ter Weel, Bas & Van der Wiel, Karen & Wouterse, Bram, 2015. "A macroeconomic analysis of the returns to public R&D investments," MERIT Working Papers 2015-042, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    More about this item

    Keywords

    Bulgaria; economic growth; currency board arrangement;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nwe:eajour:y:2016:i:2:p:159-174. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vanya Lazarova (email available below). General contact details of provider: https://edirc.repec.org/data/unweebg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.