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Capital Accumulation and Growth in Central Europe, 1920-2006

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  • Bas van Leeuwen
  • Peter Földvári

Abstract

Central and Eastern Europe is a region with widely divergent development paths. Until World War II, these countries experienced comparable growth patterns. Whereas Austria and West Germany remained part of the capitalist West and underwent periods of rapid growth, other countries, under state socialist regimes, experienced, on average, far lower growth rates. The lack of data, however, often limits the possibilities of a detailed, quantitative analysis. In this paper, we use a new data set on physical and human capital in seven Central and East European countries for the period 1920-2006 to calculate their effect on economic growth. In addition, we analyze the effect of including the quality of education in human capital. This allows us to perform a growth accounting analysis with the several production factors for Central Europe between 1920 and the present. The difference in growth path across countries is partly explained by differences in technical efficiency.

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  • Bas van Leeuwen & Peter Földvári, 2013. "Capital Accumulation and Growth in Central Europe, 1920-2006," Eastern European Economics, Taylor & Francis Journals, vol. 51(5), pages 69-93, September.
    • Handle: RePEc:mes:eaeuec:v:51:y:2013:i:5:p:69-93
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    1. Van Leeuwen, Bas & van Leeuwen-Li, Jieli & Foldvari, Peter, 2011. "Regional human capital in Republican and New China: Its spread, quality and effects on economic growth," MPRA Paper 43582, University Library of Munich, Germany.
    2. Al Mamun (a) and MD. Arfanuzzaman (b), 2020. "The Effects of Human Capital and Social Factors on the Household Income of Bangladesh: An Econometric Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 45(3), pages 29-49, September.
    3. Péter Földvári & Bas van Leeuwen & Dmitry Didenko, 2015. "Capital formation and economic growth under central planning and transition: A theoretical and empirical analysis, ca. 1920–2008," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 65(1), pages 27-50, March.
    4. Teixeira, Aurora A.C. & Queirós, Anabela S.S., 2016. "Economic growth, human capital and structural change: A dynamic panel data analysis," Research Policy, Elsevier, vol. 45(8), pages 1636-1648.
    5. Xu, Yi & Foldvari, Peter & Van Leeuwen, Bas, 2013. "Human capital in Qing China: economic determinism or a history of failed opportunities?," MPRA Paper 43525, University Library of Munich, Germany.
    6. Mariya Neycheva, 2015. "Impact of Secondary and Tertiary Education on Economic Growth: a Co-integration Model for Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 82-106.
    7. Van Leeuwen, Bas & van Leeuwen-Li, Jieli & Foldvari, Peter, 2012. "Education as a driver of income inequality in twentieth-century Africa," MPRA Paper 43574, University Library of Munich, Germany.

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