The Growth Accounting for Industry and Services of Slovakia, Slovenia and Czechia
The Growth Accounting for Industry and Services of Slovakia, Slovenia and Czechia

Summary/Abstract: The world economies are still recovering from the effects of the last great crisis. All international markets are recovering very slowly and the countries return their performance to their pre-crisis level. Research on country productivity and economic growth has been one of the most popular topic in economics for decades. Globalization has changed the overall view of whether and how economic growth could be achieved. The aim of this article was to examine the economic growth of three CEE countries (Czechia, Slovakia, Slovenia). We used the method of growth accounting: a dual approach that allowed us to track the contribution of individual inputs to production creation and economic growth. We wanted to prove that if one factor had at least a 5% greater share of overall growth than other factors for the whole economy, then this factor would be the main one for the individual sectors of the economy as well. Verification was carried out in two periods, for each country: the pre-crisis (1994-2007) and the crisis and the post-crisis period (2008-2016). We note that in each period there was only one country whose main factor of economic growth was identical in both sectors (industry and services) and for the economy as a whole. In the first period it was Slovakia and it was a capital factor. In the second period it was Czechia, and it was a TFP.

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