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Technological Progress and Factor Utilization in Eastern European Economic Growth

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  • Brada, Josef C

Abstract

Frontier production functions are estimated for the industrial sector of four East European countries: Czechoslovakia, the German Democratic Republic, Hungary, and Poland. The estimates reveal that the slowdown in industrial growth in these countries is due to a decline in the efficiency or intensity of factor utilization rather than to declining rates of growth of technological progress. In all countries, changes in the efficiency of resource utilization are found to be more responsive to changes in macroeconomic policies than to economic reforms. Finally, the amount of labor that could be displaced during cyclical downturns is estimated and found to imply potentially high levels of disguised unemployment. Copyright 1989 by The London School of Economics and Political Science.

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  • Brada, Josef C, 1989. "Technological Progress and Factor Utilization in Eastern European Economic Growth," Economica, London School of Economics and Political Science, vol. 56(224), pages 433-448, November.
    • Handle: RePEc:bla:econom:v:56:y:1989:i:224:p:433-48
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    Cited by:

    1. Jan Hagemejer & Peter Szewczyk & Joanna Tyrowicz, 2018. "Misallocations go a long way: evidence from firm-level data," GRAPE Working Papers 31, GRAPE Group for Research in Applied Economics.
    2. Svejnar, Jan & Terrell, Katherine, 1991. "Reducing labor redundancy in state owned enterprises," Policy Research Working Paper Series 792, The World Bank.
    3. Rutkowski, Michael, 1995. "Workers in transition," Policy Research Working Paper Series 1556, The World Bank.
    4. Johan F. M. Swinnen & Liesbeth Dries & Karen Macours, 2005. "Transition and agricultural labor," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 15-34, January.
    5. Jones, Derek & Klinedinst, Mark & Rock, Charles, 1998. "Productive Efficiency during Transition: Evidence from Bulgarian Panel Data," Journal of Comparative Economics, Elsevier, vol. 26(3), pages 446-464, September.
    6. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    7. Dries, Liesbeth & Swinnen, Johan F. M., 2002. "Institutional Reform and Labor Reallocation During Transition: Theory Evidence From Polish Agriculture," World Development, Elsevier, vol. 30(3), pages 457-474, March.
    8. Roberts, Bryan W. & Rodriguez, Alvaro, 1997. "Economic Growth under a Self-Interested Central Planner and Transition to a Market Economy," Journal of Comparative Economics, Elsevier, vol. 24(2), pages 121-139, April.
    9. Raul Eamets & Kadri Ukrainski, 2000. "Hidden Unemployment in Estonia: Experience from the Early Years of Transition (1989-1996)," Post-Communist Economies, Taylor & Francis Journals, vol. 12(4), pages 463-484.
    10. Onaran, Özlem, 2007. "Jobless growth in the Central and Eastern European Countries. A country specific panel data analysis for the manufacturing industry," Department of Economics Working Paper Series 103, WU Vienna University of Economics and Business.
    11. Josef C. Brada, 1991. "The Economic Transition of Czechoslovakia from Plan to Market," Journal of Economic Perspectives, American Economic Association, vol. 5(4), pages 171-177, Fall.
    12. Vonyo, Tamas & Klein, Alexander, 2016. "Why Did Socialism Fail? The Role of Factor Inputs Reconsidered," CAGE Online Working Paper Series 276, Competitive Advantage in the Global Economy (CAGE).
    13. A. Tonini, 2012. "A Bayesian stochastic frontier: an application to agricultural productivity growth in European countries," Economic Change and Restructuring, Springer, vol. 45(4), pages 247-269, November.
    14. Swinnen, Johan F.M., 2004. "Policy Reform and Agricultural Adjustment in Transition Countries," IAPRAP\IATRC Summer Symposium, Adjusting to Domestic and International Agricultural Reform in Industrial Countries, June 6-7, 2004, Philadelphia, PA, 15761, International Agricultural Policy Reform and Adjustment Project (IAPRAP).
    15. Tamás Vonyó & Alexander Klein, 2019. "Why did socialist economies fail? The role of factor inputs reconsidered," Economic History Review, Economic History Society, vol. 72(1), pages 317-345, February.
    16. Brixiova, Zuzana & Bulir, Ales, 2003. "Output performance under central planning: a model of poor incentives," Economic Systems, Elsevier, vol. 27(1), pages 27-39, March.
    17. Özlem Onaran, 2008. "Jobless Growth in the Central and Eastern European Countries," Working Papers wp165, Political Economy Research Institute, University of Massachusetts at Amherst.
    18. Milanovic,Branko L., 1990. "Poverty in Poland, Hungary, and Yugoslavia in the years of crisis, 1978-87," Policy Research Working Paper Series 507, The World Bank.
    19. William X. Wei & Dezhi Chen & Daiping Hu, 2016. "Study on the Evolvement of Technology Development and Energy Efficiency—A Case Study of the Past 30 Years of Development in Shanghai," Sustainability, MDPI, vol. 8(5), pages 1-21, May.
    20. Peter Murrell, 1991. "Can Neoclassical Economics Underpin the Reform of Centrally Planned Economies?," Journal of Economic Perspectives, American Economic Association, vol. 5(4), pages 59-76, Fall.
    21. Broadberry, Stephen & Klein, Alexander, 2011. "When and why did eastern European economies begin to fail? Lessons from a Czechoslovak/UK productivity comparison, 1921-1991," Explorations in Economic History, Elsevier, vol. 48(1), pages 37-52, January.

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