IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpol/v2012y2012i2id839p222-244.html

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

Listed:
  • 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 Decomposition]," Politická ekonomie, Prague University of Economics and Business, vol. 2012(2), pages 222-244.
    • Handle: RePEc:prg:jnlpol:v:2012:y:2012:i:2:id:839:p:222-244
    DOI: 10.18267/j.polek.839
    as

    Download full text from publisher

    File URL: http://polek.vse.cz/doi/10.18267/j.polek.839.html
    Download Restriction: free of charge
    File URL: http://polek.vse.cz/doi/10.18267/j.polek.839.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.polek.839?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
    2. 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.
    3. Pedro Cantos & José Pastor & Lorenzo Serrano, 1999. "Productivity, efficiency and technical change in the European railways: A non-parametric approach," Transportation, Springer, vol. 26(4), pages 337-357, November.
    4. 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.
    5. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    6. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    7. Oulton,Nicholas & O'Mahony,Mary, 1994. "Productivity and Growth," Cambridge Books, Cambridge University Press, number 9780521453455, January.
    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.
    9. de Boer, P.M.C., 2006. "Structural decomposition analysis and index number theory: an empirical application of the Montgomery decomposition," Econometric Institute Research Papers EI 2006-39, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    3. Paula Puškárová, 2015. "Analýza vplyvu ľudského kapitálu na celkovú produktivitu faktorov v regiónoch EÚ s využitím priestorového Durbinovho modelu [Analysis of the Human Capital Impacts on the Total Factor Productivity in the EU Regions By Means of the SDM Model]," Politická ekonomie, Prague University of Economics and Business, vol. 2015(5), pages 658-676.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oleg Badunenko & Daniel Henderson & Romain Houssa, 2014. "Significant drivers of growth in Africa," Journal of Productivity Analysis, Springer, vol. 42(3), pages 339-354, December.
    2. Bloom, David E. & Canning, David & Kotschy, Rainer & Prettner, Klaus & Schünemann, Johannes, 2024. "Health and economic growth: Reconciling the micro and macro evidence," World Development, Elsevier, vol. 178(C).
    3. Prettner, Klaus, 2012. "Public education, technological change and economic prosperity: semi-endogenous growth revisited," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 65414, Verein für Socialpolitik / German Economic Association.
    4. Siskova, M. & Kuhn, M. & Prettner, K. & Prskawetz, A., 2023. "Does human capital compensate for population decline?," The Journal of the Economics of Ageing, Elsevier, vol. 26(C).
    5. Acikgoz, Senay & Ben Ali, Mohamed Sami, 2019. "Where does economic growth in the Middle Eastern and North African countries come from?," The Quarterly Review of Economics and Finance, Elsevier, vol. 73(C), pages 172-183.
    6. Alexander Monge-Naranjo & Juan M. Sánchez & Raül Santaeulàlia-Llopis, 2019. "Natural Resources and Global Misallocation," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(2), pages 79-126, April.
    7. Aisen, Ari & Veiga, Francisco José, 2013. "How does political instability affect economic growth?," European Journal of Political Economy, Elsevier, vol. 29(C), pages 151-167.
    8. Kim, Dong-Hyeon & Wu, Yi-Chen & Lin, Shu-Chin, 2018. "Heterogeneity in the effects of government size and governance on economic growth," Economic Modelling, Elsevier, vol. 68(C), pages 205-216.
    9. German Cubas & B. Ravikumar & Gustavo Ventura, 2016. "Talent, Labor Quality, and Economic Development," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 21, pages 160-181, July.
    10. Walheer, Barnabé, 2018. "Economic growth and greenhouse gases in Europe: A non-radial multi-sector nonparametric production-frontier analysis," Energy Economics, Elsevier, vol. 74(C), pages 51-62.
    11. Antonin Bergeaud & Gilbert Cette & Rémy Lecat, 2016. "The role of production factor quality and technology diffusion in 20th century productivity growth," Working papers 588, Banque de France.
    12. Raphael Espinoza, 2012. "Factor Accumulation and the Determinants of TFP in the GCC," OxCarre Working Papers 094, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    13. Prettner, Klaus & Bloom, David E. & Strulik, Holger, 2013. "Declining fertility and economic well-being: Do education and health ride to the rescue?," Labour Economics, Elsevier, vol. 22(C), pages 70-79.
    14. 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.
    15. Ruba A. Aljarallah & Andrew Angus, 2020. "Dilemma of Natural Resource Abundance: A Case Study of Kuwait," SAGE Open, , vol. 10(1), pages 21582440198, January.
    16. Kezia De Lucas Bondezan & Joilson Dias, 2014. "Crescimento Econômico De Longo Prazo No Brasil: Uma Abordagem Sobre O Da Acumulação De Capital E Das Instituições," Anais do XLI Encontro Nacional de Economia [Proceedings of the 41st Brazilian Economics Meeting] 096, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    17. Priyo Asad Karim Khan, 2012. "Sector-Specific Capital, Labor Market Distortions and Cross-Country Income Differences: A Two-Sector General Equilibrium Approach," The B.E. Journal of Macroeconomics, De Gruyter, vol. 12(1), pages 1-52, March.
    18. Jan Grobovšek, 2020. "Managerial Delegation, Law Enforcement, and Aggregate Productivity," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(5), pages 2256-2289.
    19. David E. Bloom & Alex Khoury & Vadim Kufenko & Klaus Prettner, 2021. "Spurring Economic Growth through Human Development: Research Results and Guidance for Policymakers," Population and Development Review, The Population Council, Inc., vol. 47(2), pages 377-409, June.
    20. Hongchun Zhao & Yanjie Liu, 2018. "Where has All the Education Gone? Everywhere But into Growth," Computational Economics, Springer;Society for Computational Economics, vol. 51(1), pages 35-74, January.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlpol:v:2012:y:2012:i:2:id:839:p:222-244. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.