PL EN
RESEARCH PAPER
Structural Change and Labour Productivity in Central Europe
 
More details
Hide details
1
Instytut Ekonomii i Finansów, Kolegium Nauk Społecznych, Uniwersytet Rzeszowski, Polska
 
2
Seminarium Doktorskie w Instytucie Ekonomii i Finansów, Uniwersytet Rzeszowski, Polska
 
 
Submission date: 2020-10-28
 
 
Final revision date: 2021-04-26
 
 
Acceptance date: 2021-06-16
 
 
Publication date: 2021-09-30
 
 
Corresponding author
Alina Szewc-Rogalska   

Instytut Ekonomii i Finansów, Kolegium Nauk Społecznych, Uniwersytet Rzeszowski, Polska
 
 
GNPJE 2021;307(3):63-96
 
KEYWORDS
JEL CLASSIFICATION CODES
ABSTRACT
The aim of the study was to determine the intensity and direction of structural change processes as well as their impact on labour productivity in Central Europe from 1995 to 2018. The shift-share analysis method was used to conduct an analysis of these interrelationships across nine sectors. In the majority of the analysed countries, a major driver of productivity was a shift of the workforce to sectors with a relatively high level of labour productivity. Structural change was the key driver of labour productivity in the Polish economy. Across the studied Central European countries, the highest level of labour productivity was recorded in hi-tech knowledge-intensive services, while hi-tech industries showed the fastest growth in terms of labour productivity. The sectors that drove the growth of labour productivity made a relatively low contribution to total employment. As a result, these sectors contributed much less to aggregate labour productivity growth than low knowledge-intensive services and low-technology industries.
 
REFERENCES (47)
1.
Applebaum E., Schettkat R. [1999], Are prices unimportant? The changing structure of the industrialized economies, Journal of Post Keynesian Economics, 22: 387–398.
 
2.
Baumol W. J. [1967], Macroeconomics of unbalanced growth revisited: the anatomy of urban crisis, American Economic Review, 57: 415–426.
 
3.
Brondino G. [2018], Productivity growth and structural change in China (1995–2009): a subsystems analysis, Structural Change and Economic Dynamics, 49: 183–191.
 
4.
Ceccobelli M., Gitto S., Mancuso P. [2012], ICT capital and labour productivity growth: a non-parametric analysis of 14 OECD countries, Telecommunications Policy, 36: 282–292.
 
5.
Daveri F. [2002], The new economy in Europe: 1992–2001, Oxford Review of Economic Policy, 18: 345–362.
 
6.
Dietrich A. [2008], Does growth cause structural change, or is it the other way around? A dynamic panel data analysis for seven OECD countries, Empirical Economics, 43: 915–944.
 
7.
Fagerberg J. [2000], Technological progress, structural change and productivity growth: a comparative study, Structural Change and Economic Dynamics, 11: 393–411.
 
8.
Fernandez R., Palazuelos E. [2009], Demand, employment, and labour productivity in the European economies, Structural Change and Economic Dynamics, 20: 1–12.
 
9.
Fernandez R., Palazuelos E. [2018], Measuring the role of manufacturing in the productivity growth of the European economies (1993–2007), Structural Change and Economic Dynamics, 46: 1–12.
 
10.
Fixler D. J., Siegel D. [1999], Outsourcing and productivity growth in services, Structural Change and Economic Dynamics, 10: 177–194.
 
11.
Florczak W., Welfe W. [2000], Wyznaczanie potencjalnego PKB i łącznej produktywności czynników produkcji, Gospodarka Narodowa, 11–12: 40–55.
 
12.
Glocker C., Wegmueller P. [2018], International evidence of time-variation in trend labor productivity growth, Economic Letters, 167: 115–119.
 
13.
Glossary: High-tech classification of manufacturing industries [2018], Eurostat, http://ec.europe/eurostat/stat... (dostęp: 27.12.2020).
 
14.
Glossary: Knowledge-intensive services (KIS) [2017], Eurostat, http://ec.europe/eurostat/stat... (dostęp: 27.12.2020).
 
15.
Górajski M., Błażej M. [2020], A Control Function Approach to Measuring the Total Factor Productivity of Enterprises in Poland, Bank i Kredyt, 51 (3): 293–316.
 
16.
Gradzewicz M., Growiec J., Kolasa M., Postek L., Strzelecki P. [2018], Poland’s uninterrupted growth performance: New growth accounting evidence, Post-Communist Economies, 30 (2): 238–272.
 
17.
Grela M., Majchrowska A., Michałek T., Mućk J., Stążka-Gawrysiak A., Tchorek G., Wagner M. [2017], Is Central and Eastern Europe converging towards the EU-15?, NBP Working Papers no. 264, Narodowy Bank Polski, Economic Research Department.
 
18.
Grodzicki M. [2014], Sektorowa dekompozycja wzrostu wydajności pracy w krajach Unii Europejskiej, Gospodarka w Praktyce i Teorii, 9: 35–50.
 
19.
Growiec J. [2008a], A new class of production functions and an argument against purely labor-augmenting technical change, International Journal of Economic Theory, 4: 483–502.
 
20.
Growiec J. [2008b], Production functions and distributions of unit factor productivities: Uncovering the link, Economics Letters, 101: 87–90.
 
21.
Hagemejer J., Kolasa M. [2011], Internationalization and economic performance of enterprises: Evidence from Polish firm-level data, The World Economy, 34 (1): 74–100.
 
22.
Hagemejer J., Mućk J. [2019], Export-led growth and its determinants: Evidence from Central and Eastern European countries, The World Economy, 42 (7): 1994–2025.
 
23.
Jorgenson D. W. [2003], Information technology and the U. S. economy, American Economic Review, 91: 1–32.
 
24.
Kinfemichael B., Morshed A. [2019], Unconditional convergence of labor productivity in service sector, Journal of Macroeconomics, 59: 217–229.
 
25.
Kotlewski D., Błażej M. [2020a], KLEMS growth accounting implemented in Poland, Statistics in Transition, 21 (1): 95–122.
 
26.
Kotlewski D., Błażej M. [2020b], Sustainability of the convergence between Polish and UE developed economies in the light of KLEMS growth accounting, Bank i Kredyt, 51 (2): 121–142.
 
27.
Kruger J. [2008], Productivity and structural change: a review of the literature, Journal of Economic Surveys, 22: 330–363.
 
28.
Lee J. W., McKibbin W. [2018], Service sector productivity and economic growth in Asia, Economic Modelling, 74: 247–263.
 
29.
Martino R. [2015], Convergence and growth. Labour productivity dynamics in the European Union, Journal of Macroeconomics, 46: 186–200.
 
30.
McMillan M., Rodrik D. [2011], Globalization, structural change, and productivity growth, NBER Working Paper no. 17143, The National Bureau of Economic Research Working, Cambridge M. A.
 
31.
Mucha-Leszko B. [2016], Technologie ICT, zmiany strukturalne i wydajność pracy jako czynniki rosnącej luki gospodarczej Unii Europejskiej wobec Stanów Zjednoczonych, Finanse, Rynki Finansowe, Ubezpieczenia, 3 (81): 179–190.
 
32.
Najarzadeh R., Rahimzadeh F., Reed M. [2014], Does the Internet increase labour productivity? Evidence from a cross-country dynamic panel, Journal of Policy Modeling, 34: 986–993.
 
33.
Oliner S. D., Sichel D. E. [2002], Information technology and productivity: where are we now and where are we going?, Federal Reserve Bank of Atlanta Economic Review, 87: 15–44.
 
34.
Padilla-Peres R., Villarreal F. [2017], Structural change and productivity growth in Mexico, 1990–2014, Structural Change and Economic Dynamics, 41: 53–63.
 
35.
Próchniak M. [2019], Zmiany łącznej produktywności czynników wytwórczych w dobie czwartej rewolucji przemysłowej, w: Kowalski A. M., Weresa M. A. (red.), Polska. Raport o konkurencyjności 2019: Konkurencyjność międzynarodowa w kontekście rozwoju przemysłu 4.0: 231–244, Oficyna Wydawnicza, Warszawa.
 
36.
Próchniak M., Witkowski B. [2013], Time stability of the beta convergence among EU countries: Bayesian model averaging perspective, Economic Modelling, 30 (C): 322–333.
 
37.
Rapacki R., Próchniak M. [2012], Wzrost gospodarczy w krajach Europy Środkowo-Wschodniej na tle wybranych krajów wschodzących, Gospodarka Narodowa, 253 (1–2): 65–96.
 
38.
Peneder M. [2003], Industrial structure and aggregate growth, Structural Change and Economic Dynamics, 14: 427–448.
 
39.
Timmer M., Szirmai A. [2000], Productivity growth in Asian manufacturing: the structural bonus hypothesis re-examined, Structural Change and Economic Dynamics, 11: 371–391.
 
40.
Stefański M. [2020], To What Extent does Convergence Explain the Slowdown in Potential Growth of the CEE Countries Following the Global Financial Crisis?, Working Papers no. 2020/058, Warsaw School of Economics, Collegium of Economic Analysis.
 
41.
Szewc-Rogalska A. [2015], Oportunizm podmiotów i instytucji jako stymulator ryzyka systemowego, Nauki o Finansach. Financial Sciences, 1 (22): 91–100.
 
42.
Święcki T. [2017], Determinants of structural change, Review of Economics Dynamics, 24: 95–131.
 
43.
Van Ark B., Timmer M. P. [2003], Asia’s productivity performance and potential: the contribution of sector and structural Change, University of Groningen & Conference Board, Groningen.
 
44.
Vu K. [2017], Structural change and economic growth: Empirical evidence and policy insights from Asian economies, Structural Change and Economics Dynamics, 41: 64–77.
 
45.
Welfe W. [2003], Łączna produktywność czynników produkcji a postęp techniczny, Studia Ekonomiczne, 1–2: 99–115.
 
46.
Winiecki J. [2014], Przekształcenia strukturalne w procesie rozwoju gospodarczego: modyfikacje i rozszerzenia, Ruch Prawniczy, Ekonomiczny i Socjologiczny, 2: 271–292.
 
47.
Yilmaz G. [2016], Labour productivity in the middle income trap and the graduated countries, Central Bank Review, 16: 73–83.
 
eISSN:2300-5238
Journals System - logo
Scroll to top