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Belarusian Economic Growth Decomposition

Author

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  • Dzmitry Kruk
  • Kateryna Bornukova

Abstract

Belarus experienced rapid economic growth in the 2000's, which abruptly came to halt after 2008. The authors found that the major source of growth was capital accumulation, while growth in total factor productivity (TFP) was modest. Moreover, government interventions and controls on the capital market contributed to misallocation which lowered aggregate productivity. Lack of productivity growth led to the loss of competitiveness on the international markets. Comparisons of TFP in Belarus with the Czech Republic and Sweden shows that comparative advantages of Belarus are concentrated in the natural-resource based industries, and TFP gap with the Czech Republic is not closing over time.

Suggested Citation

  • Dzmitry Kruk & Kateryna Bornukova, 2013. "Belarusian Economic Growth Decomposition," BEROC Working Paper Series 24, Belarusian Economic Research and Outreach Center (BEROC).
    • Handle: RePEc:bel:wpaper:24
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    File URL: http://eng.beroc.by/webroot/delivery/files/WP_24_eng_Bornukova&Kruk.pdf
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    References listed on IDEAS

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    Cited by:

    1. Kirill Shakhnov, 2015. "Belarusian Business Cycle in Cross-country Comparison: Industry and Aggregate Data," BEROC Working Paper Series 30, Belarusian Economic Research and Outreach Center (BEROC).

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    More about this item

    Keywords

    Growth Accounting; Aggregate Productivity; Transition; Belarus;
    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
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects
    • P44 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - National Income, Product, and Expenditure; Money; Inflation

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