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Príčiny zaostávania nových členských krajín EÚ: empirická analýza na základe Montgomeryho dekompozície
[Causes of Lagging Behind of New Member States of EU: Empirical Analysis by Montgomery Decomposition]

Author

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  • Daniel Dujava

Abstract

We use the method of ideal Montgomery decomposition to explain differences in product per capita in new member states of EU and selected benchmark country of EU5 ? Netherlands ? on differences in total factor productivity (TFP), capital per inhabitant, rate of capacity utilization, rate of employment, average number of hours worked and in human capital. We find that in 2009 average TFP in new member countries reached only 60% of TFP of the Netherlands. Differences in TFP explain almost 80% of differences in product per capita. We investigate the role of technology and of allocative efficiency in low TFP. Our analysis suggests that unless a lag in technology is longer than 20 years, most part of low TFP is due to inferior allocative efficiency and not due to technology.

Suggested Citation

  • Daniel Dujava, 2012. "Príčiny zaostávania nových členských krajín EÚ: empirická analýza na základe Montgomeryho dekompozície
    [Causes of Lagging Behind of New Member States of EU: Empirical Analysis by Montgomery Decompo    ," Politická ekonomie, University of Economics, Prague, vol. 2012(2), pages 222-244.
    • Handle: RePEc:prg:jnlpol:v:2012:y:2012:i:2:id:839:p:222-244
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    References listed on IDEAS

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    5. ALVARO ANGERIZ & JOHN McCOMBIE & MARK ROBERTS, 2006. "Productivity, Efficiency And Technological Change In European Union Regional Manufacturing: A Data Envelopment Analysis Approach," Manchester School, University of Manchester, vol. 74(4), pages 500-525, July.
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    7. Paul De Boer, 2009. "Multiplicative Decomposition And Index Number Theory: An Empirical Application Of The Sato-Vartia Decomposition," Economic Systems Research, Taylor & Francis Journals, vol. 21(2), pages 163-174.
    8. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
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    Citations

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    Cited by:

    1. M. Lábaj & M. Luptáčik & E. Nežinský, 2014. "Data envelopment analysis for measuring economic growth in terms of welfare beyond GDP," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(3), pages 407-424, August.
    2. Lucia Bosáková & Matúš Kubák & Marek Andrejkovič & Zuzana Hajduová, 2015. "Doing business abroad: utility function model for country selection in preliminary screening phase," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(1), pages 53-68, March.
    3. Paula Puškárová, 2015. "Analýza vplyvu ľudského kapitálu na celkovú produktivitu faktorov v regiónoch EÚ modelom SDM
      [Analysis of the Human Capital Impacts on the Total Factor Productivity in the EU Regions By Means of th      ," Politická ekonomie, University of Economics, Prague, vol. 2015(5), pages 657-675.
    4. Martin Lábaj & Mikuláš Luptáèik & Eduard Nežinský, 2013. "Data Envelopment Analysis for Measuring of Economic Growth in Terms of Welfare Beyond GDP," Department of Economic Policy Working Paper Series 002, Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava.

    More about this item

    Keywords

    efficiency; total factor productivity; capital; human capital; Structural Decomposition; Technology;

    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

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