Sectoral Approach in Output Growth Decomposition and its Determinants in Europe

The structural changes in Europe have occurred over the last several decades, reducing output share in the goods sector, while increasing its share in overall services. Applying the growth accounting approach, we decomposed output growth in the economy while following the sectoral approach, in ten i...

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Autor principal:	Maja Bacovic
Formato:	article
Lenguaje:	AR EN
Publicado:	Ziane Achour University of Djelfa 2021
Materias:	output growth decomposition sectoral approach total factor productivity research and development Social Sciences H Commerce HF1-6182
Acceso en línea:	https://doaj.org/article/729cb05e80d045149dc091487d170775
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spelling	oai:doaj.org-article:729cb05e80d045149dc091487d1707752021-12-02T19:02:19ZSectoral Approach in Output Growth Decomposition and its Determinants in Europe2676-184X2710-885610.48100/merj.2021.159https://doaj.org/article/729cb05e80d045149dc091487d1707752021-09-01T00:00:00Zhttps://mer-j.com/merj/index.php/merj/article/view/159https://doaj.org/toc/2676-184Xhttps://doaj.org/toc/2710-8856The structural changes in Europe have occurred over the last several decades, reducing output share in the goods sector, while increasing its share in overall services. Applying the growth accounting approach, we decomposed output growth in the economy while following the sectoral approach, in ten individual sectors in twenty-six European countries, from 2000 to 2019. Our analysis shows that total factor productivity has accounted for almost half of the European countries growth in output in the last two decades, with the other half primarily accounted for by increases in fixed asset growth and employment growth, while its variations among sectors are significant. The output growth in the services sector is significantly more driven by employment growth than in the goods sector, leading to overall employment growth in the economy. Applying the panel pooled OLS model, we found that the relevance of expenditures for research and development is high and positive in all sectors, but higher in industry and knowledge-intensive services (information and communication, scientific activities) compared to all sectors average. To the best knowledge of the author, this is the first study presenting output growth decomposition estimates at the sectoral level for a selected group of countries, but also the first study presenting estimates of TFP in the total economy for a selected time periods. In addition, this is the first study that presents the relevance of investment in research and development at the sectoral level in this specific time period and group of countries. Results of the study may be used in defining national policies priorities, as there are varieties among sectors in terms of their impact on employment and economic growth.Maja BacovicZiane Achour University of Djelfaarticleoutput growth decompositionsectoral approachtotal factor productivityresearch and developmentSocial SciencesHCommerceHF1-6182ARENمجلة بحوث الإدارة والاقتصاد, Vol 3, Iss 2, Pp 1-21 (2021)
institution	DOAJ
collection	DOAJ
language	AR EN
topic	output growth decomposition sectoral approach total factor productivity research and development Social Sciences H Commerce HF1-6182
spellingShingle	output growth decomposition sectoral approach total factor productivity research and development Social Sciences H Commerce HF1-6182 Maja Bacovic Sectoral Approach in Output Growth Decomposition and its Determinants in Europe
description	The structural changes in Europe have occurred over the last several decades, reducing output share in the goods sector, while increasing its share in overall services. Applying the growth accounting approach, we decomposed output growth in the economy while following the sectoral approach, in ten individual sectors in twenty-six European countries, from 2000 to 2019. Our analysis shows that total factor productivity has accounted for almost half of the European countries growth in output in the last two decades, with the other half primarily accounted for by increases in fixed asset growth and employment growth, while its variations among sectors are significant. The output growth in the services sector is significantly more driven by employment growth than in the goods sector, leading to overall employment growth in the economy. Applying the panel pooled OLS model, we found that the relevance of expenditures for research and development is high and positive in all sectors, but higher in industry and knowledge-intensive services (information and communication, scientific activities) compared to all sectors average. To the best knowledge of the author, this is the first study presenting output growth decomposition estimates at the sectoral level for a selected group of countries, but also the first study presenting estimates of TFP in the total economy for a selected time periods. In addition, this is the first study that presents the relevance of investment in research and development at the sectoral level in this specific time period and group of countries. Results of the study may be used in defining national policies priorities, as there are varieties among sectors in terms of their impact on employment and economic growth.
format	article
author	Maja Bacovic
author_facet	Maja Bacovic
author_sort	Maja Bacovic
title	Sectoral Approach in Output Growth Decomposition and its Determinants in Europe
title_short	Sectoral Approach in Output Growth Decomposition and its Determinants in Europe
title_full	Sectoral Approach in Output Growth Decomposition and its Determinants in Europe
title_fullStr	Sectoral Approach in Output Growth Decomposition and its Determinants in Europe
title_full_unstemmed	Sectoral Approach in Output Growth Decomposition and its Determinants in Europe
title_sort	sectoral approach in output growth decomposition and its determinants in europe
publisher	Ziane Achour University of Djelfa
publishDate	2021
url	https://doaj.org/article/729cb05e80d045149dc091487d170775
work_keys_str_mv	AT majabacovic sectoralapproachinoutputgrowthdecompositionanditsdeterminantsineurope
_version_	1718377272659935232

Sectoral Approach in Output Growth Decomposition and its Determinants in Europe

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