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Catching up in Czech Republic, Hungary and Poland

Author

Listed:
  • Jan Witajewski-Baltvilks

    (Instytut Badań Strukturalnych)

Abstract

The paper summarizes the convergence of the Polish, Hungarian and Czech economies with the German economy and to their steady states in the period between 1995 and 2013. The growth of relative output is decomposed into growth of capital, labour input, human capital and TFP. The paper also proposes a simple new method that takes advantage of the availability of the data on relative factor prices to separate the effect of increased share of well-educated workers and the effect of increased productivity of a more abundant educational group. The results suggest a massive contribution of TFP convergence in the GDP convergence. The accumulation of physical capital was sluggish, particularly before 2007.

Suggested Citation

  • Jan Witajewski-Baltvilks, 2016. "Catching up in Czech Republic, Hungary and Poland," Bank i Kredyt, Narodowy Bank Polski, vol. 47(4), pages 319-340.
    • Handle: RePEc:nbp:nbpbik:v:47:y:2016:i:4:p:319-340
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    More about this item

    Keywords

    economic convergence; growth accounting; human capital;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • 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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