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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]

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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, 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
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    References listed on IDEAS

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    7. 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.
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    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 i," Politická ekonomie, Prague University of Economics and Business, vol. 2015(5), pages 658-676.

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    More about this item

    Keywords

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

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