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Productivity Performance of the Service Sectors in European Union Countries

Author

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  • Wyszkowska-Kuna Joanna

    (Ph.D., University of Lodz, Faculty of Economics and Sociology Department of World Economy and European Integration, Lodz, Poland)

Abstract

Economic development has resulted in structural transformation towards economies based on services, which has raised some concerns about the limited opportunities for sustaining productivity growth. The aim of this paper is to examine total factor productivity (TFP) growth in the service sector in comparison with total industries and the manufacturing sector, as well as within the service sector. The study is based on the data from the EU-KLEMS database (2017), and it covers the years 1995–2015. It refers to EU countries, making it possible to carry out a comparative analysis between countries, in particular between the ‘old’ and ‘new’ member states. The study demonstrates that productivity growth in services was significantly lower than in manufacturing, but compared with total industries, the disparity was not significant. Productivity growth was usually higher in the ‘new’ EU countries than in the ‘old’ ones, except for information and communications services, which, on the whole, were the main driving force behind the productivity growth in services.

Suggested Citation

  • Wyszkowska-Kuna Joanna, 2019. "Productivity Performance of the Service Sectors in European Union Countries," Comparative Economic Research, Sciendo, vol. 22(4), pages 7-22, December.
    • Handle: RePEc:vrs:coecre:v:22:y:2019:i:4:p:7-22:n:1
    DOI: 10.2478/cer-2019-0029
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    More about this item

    Keywords

    productivity; TFP; services; EU;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • 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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