Productivity determinants and their contributions to productivity growth in the Baltic countries before and after their entry into the European Union: a comparative industrial perspective

Abstract

The article aims to apply the EU KLEMS methodology to obtain labour productivity growth determinants for the Baltic countries for two periods of time: before and after their entry into the European Union. The study’s novelty lies in its detection of new statistical data that are unavailable in official databases for the Baltic countries. First, the countries’ economic structures are examined during the two periods. Following the derivation of new statistical data, data were prepared according to strict methodological rules and the growth accounting method was applied to detect productivity growth determinants and the main industries that stimulate aggregated labour productivity growth. Subsequently, a comparative economic analysis is conducted for the Baltic countries. Productivity determinants are scrutinised for the aggregated market economy and the specific industries that contribute most to aggregated labour productivity growth. Some consistent patterns are detected for certain groups of tangible and intangible capital.