Total Factor Productivity Growth, Structural Change and Convergence in the New Members of the European Union
AbstractWe estimate total factor productivity (TFP) growth in agriculture, industry and services in new European Union member countries and show how structural change contributes to growth. Because of the difficulties in measuring the capital stock of transition economies, we develop a model that estimates sectoral TFPs from data on sectoral employment and GDP per capita. Compared to Austria, new EU members have lower TFP levels, but their TFP growth is largely higher. Inter-sectoral movements of labour do not play a large role in aggregate TFP growth, and capital accumulation is an important component of convergence to EU levels of per capita GDP.
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Bibliographic InfoArticle provided by Palgrave Macmillan in its journal Comparative Economic Studies.
Volume (Year): 51 (2009)
Issue (Month): 4 (December)
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Web page: http://www.palgrave-journals.com/
Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
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- Butzer, Rita & Mundlak, Yair & Larson, Donald F., 2010. "Measures of fixed capital in agriculture," Policy Research Working Paper Series 5472, The World Bank.
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