Capital Accumulation and Growth in Central Europe, 1920-2006

Central and Eastern Europe is a region with widely divergent development paths. Until World War II, these countries experienced comparable growth patterns. Whereas Austria and West Germany remained part of the capitalist West and underwent periods of rapid growth, other countries, under state social...

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Bibliographic Details
Published in:Eastern European economics 2013-09, Vol.51 (5), p.69-93
Main Authors: van Leeuwen, Bas, Földvári, Peter
Format: Article
Language:English
Subjects:
Economic growth
Economic theory
Human capital
Production factors
Quality of education
Studies
World War II
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Summary:Central and Eastern Europe is a region with widely divergent development paths. Until World War II, these countries experienced comparable growth patterns. Whereas Austria and West Germany remained part of the capitalist West and underwent periods of rapid growth, other countries, under state socialist regimes, experienced, on average, far lower growth rates. The lack of data, however, often limits the possibilities of a detailed, quantitative analysis. In this paper, we use a new data set on physical and human capital in seven Central and East European countries for the period 1920-2006 to calculate their effect on economic growth. In addition, we analyze the effect of including the quality of education in human capital. This allows us to perform a growth accounting analysis with the several production factors for Central Europe between 1920 and the present. The difference in growth path across countries is partly explained by differences in technical efficiency.
ISSN:0012-8775
1557-9298
DOI:10.2753/EEE0012-8775510503