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Decomposition of economic growth in Bulgaria by industry


  • Stanislav Ivanov
  • Craig Webster


Purpose - The aim of this paper is to present a methodology for the decomposition of economic growth by industry which allows interindustry comparisons. Design/methodology/approach - The paper uses the growth decomposition methodology developed by Ivanov and Ivanov and Webster for tourism and generalizes it for all industries in the national economy. Findings - The methodology is exemplified with analysis of the contribution of specific industries to economic growth in Bulgaria for the period 2000-2005. However, the model presents an approach that is general and can be applied to other countries and industries. Research limitations/implications - The methodology identifies the direct impacts of specific industries on the per capita growth of real gross domestic product/gross value added. Future research might integrate indirect and induced effects in the analysis. The methodology could be further refined by decomposing the gross domestic product/gross value added to their constituent elements. Practical implications - The paper identifies the industries in the Bulgarian economy that generate economic growth. Originality/value - The paper introduces a new methodology for measuring the contribution of specific industries to economic growth. It might be of value to both academics and macroeconomic policy makers.

Suggested Citation

  • Stanislav Ivanov & Craig Webster, 2010. "Decomposition of economic growth in Bulgaria by industry," Journal of Economic Studies, Emerald Group Publishing, vol. 37(2), pages 219-227, May.
  • Handle: RePEc:eme:jespps:v:37:y:2010:i:2:p:219-227

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    1. repec:ers:journl:v:xx:y:2017:i:4a:p:707-729 is not listed on IDEAS
    2. repec:eee:touman:v:40:y:2014:i:c:p:137-140 is not listed on IDEAS
    3. Jolanda Hessels & Peter van der Zwan & Mark Sanders, 2013. "Entrepreneurial activity, industry orientation, and economic growth," Scales Research Reports H201307, EIM Business and Policy Research.
    4. repec:ers:journl:v:xx:y:2017:i:3b:p:679-693 is not listed on IDEAS
    5. Rosenkranz, Lydia & Seintsch, Björn & Dieter, Matthias, 2015. "Decomposition analysis of changes in value added. A case study of the sawmilling and wood processing industry in Germany," Forest Policy and Economics, Elsevier, vol. 54(C), pages 36-50.


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