Structural Changes and Labour Productivity Dynamics in Bulgaria
Structural Changes and Labour Productivity Dynamics in Bulgaria

Author(s): Stela Raleva
Subject(s): Economy, Business Economy / Management
Published by: Институт за икономически изследвания при Българска академия на науките
Summary/Abstract: The paper studies the structural changes in the Bulgarian economy and their impact on labour productivity growth. It analyses the dynamics of sectoral structures of gross value added and employment and reveals their peculiarities related to differences in labour productivity. It characterises productivity growth rates overall and by economic sector and provides a comment on changes in relative productivity levels. By applying the shift-share methodology and decomposing productivity growth, an assessment is made of its dependence on sectoral shifts and on intra-sectoral changes related to the fundamental factors of growth. Empirical results show that the economy has experienced sustained structural changes with an increasing share of the tertiary sector, which is characterised by the highest level of productivity. Its relative level has been declining, with the gap with industry narrowing and that with agriculture widening. The relocation of workers between economic sectors accounts for between 1/5 and 1/4 of the productivity growth rate, with both structural effects – static and dynamic – being positive only in the services sector.

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