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Assessing the potential for knowledge-based development in transition countries

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  • Reinhilde Veugelers

Abstract

This Working Paper by Bruegel Senior Fellow Reinhilde Veugelers examines the potential for a knowledge-based growth path in transition countries of central and eastern Europe, the Caucasus and Central Asia. The paper looks closely at how total-factor productivity, a residual growth factor commonly interpreted as reflecting technological progress, drives growth rates in these economies which exhibit a much lower GDP per capita compared to the EU15 or the United States. By analysing the prerequisites for knowledge-based growth, the author explains why transition countries are at a systemic disadvantage relative to the EU15, US and Japan and have limited potential for knowledge-based growth.

Suggested Citation

  • Reinhilde Veugelers, 2010. "Assessing the potential for knowledge-based development in transition countries," Working Papers 425, Bruegel.
    • Handle: RePEc:bre:wpaper:425
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