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Capital accumulation and growth in Central Europe, 1920-2006

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  • Bas van Leeuwen
  • Peter Földvari

Abstract

Central and Eastern Europe is a region with widely divergent development paths. Up to WWII, these countries experienced comparable growth patterns. Yet, whereas Austria and West Germany remained part of the capitalist West and underwent periods of rapid growth, other countries, under state-socialist regimes, experienced on average far lower growth rates. The lack of data, however, often limits the possibilities of a detailed, quantitative analysis. In this paper, we use a new dataset on physical and human capital in seven Eastern and Central European countries for the period 1920-2006 to calculate the effect on economic growth. We analyse the effect of including the quality of education in human capital. This allows us to perform a growth accounting analysis with the several production factors for Central Europe between 1920 and the present. The difference in growth path across countries is partly explained by differences in efficiency.

Suggested Citation

  • Bas van Leeuwen & Peter Földvari, 2011. "Capital accumulation and growth in Central Europe, 1920-2006," Working Papers 0023, Utrecht University, Centre for Global Economic History.
    • Handle: RePEc:ucg:wpaper:0023
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    Cited by:

    1. Van Leeuwen, Bas & van Leeuwen-Li, Jieli & Foldvari, Peter, 2011. "Regional human capital in Republican and New China: Its spread, quality and effects on economic growth," MPRA Paper 43582, University Library of Munich, Germany.
    2. Al Mamun (a) and MD. Arfanuzzaman (b), 2020. "The Effects of Human Capital and Social Factors on the Household Income of Bangladesh: An Econometric Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 45(3), pages 29-49, September.
    3. Péter Földvári & Bas van Leeuwen & Dmitry Didenko, 2015. "Capital formation and economic growth under central planning and transition: A theoretical and empirical analysis, ca. 1920–2008," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 65(1), pages 27-50, March.
    4. Teixeira, Aurora A.C. & Queirós, Anabela S.S., 2016. "Economic growth, human capital and structural change: A dynamic panel data analysis," Research Policy, Elsevier, vol. 45(8), pages 1636-1648.
    5. Xu, Yi & Foldvari, Peter & Van Leeuwen, Bas, 2013. "Human capital in Qing China: economic determinism or a history of failed opportunities?," MPRA Paper 43525, University Library of Munich, Germany.
    6. Mariya Neycheva, 2015. "Impact of Secondary and Tertiary Education on Economic Growth: a Co-integration Model for Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 82-106.
    7. Van Leeuwen, Bas & van Leeuwen-Li, Jieli & Foldvari, Peter, 2012. "Education as a driver of income inequality in twentieth-century Africa," MPRA Paper 43574, University Library of Munich, Germany.

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    More about this item

    Keywords

    Eastern Europe; human capital; physical capital; growth accounting; efficiency; long run growth;
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