Int Adv Econ Res (2018) 24:97–98 https://doi.org/10.1007/s11294-018-9673-0 RESEARCH NOTE Comparison of the Development of GDP Quality in the Czech Republic and Germany 1 1 1 Petr Wawrosz & Jana Kotěšovcová & JiříMihola Published online: 13 February 2018 International Atlantic Economic Society 2018 JEL Classification C10 O10 This note introduces a new way to analyze whether gross domestic product (GDP) development is based on intensive or extensive factors. The issue was originally solved by growth accounting that assesses how growth rates of labor, capital and technological progress contribute to the GDP growth rate (e.g., Barro 1999). The technological progress growth rate can be seen as an intensive factor and the labor and capital growth rates as extensive ones. However, growth accounting is principally constructed for GDP growth and not for other possible situations, such as GDP decline or stagnation. It further measures the contribution of all factors in absolute values, although the contri- butions of labor and capital are weighted. Although it permits calculation of the relative shares of each factor, problems arise if the GDP growth rate and the growth rate of any factor develop inversely (e.g., the capital growth rate is positive and the GDP growth rate is
International Advances in Economic Research – Springer Journals
Published: Feb 13, 2018
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