Growth and structural changes in transition countries: the chicken or the egg?
The objective of this study is to test empirically the relationship between structural changes (changes in gross value added and employment) and economic growth. We used a panel Granger-causality analysis based on annual data for eight transition countries, covering the period 1995–2011. The main fi...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Vilnius Gediminas Technical University
2018-11-01
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| Series: | Journal of Business Economics and Management |
| Subjects: | |
| Online Access: | https://journals.vgtu.lt/index.php/JBEM/article/view/6580 |
| _version_ | 1819292198102892544 |
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| author | Magdalena Olczyk Aleksandra Kordalska |
| author_facet | Magdalena Olczyk Aleksandra Kordalska |
| author_sort | Magdalena Olczyk |
| collection | DOAJ |
| description | The objective of this study is to test empirically the relationship between structural changes (changes in gross value added and employment) and economic growth. We used a panel Granger-causality analysis based on annual data for eight transition countries, covering the period 1995–2011. The main finding is that the causality relations analysed are heterogeneous processes and are identified more often when we measure structural changes by value added than by changes in employment. Among the countries analysed, we separate a subgroup of economies with very strong bilateral causality (small countries such as Latvia, Lithuania, and Estonia), a subgroup in which no causal relationships are observed (e.g., Hungary in the case of employment), and a group with a one-directional relationship (e.g., Poland, where GDP changes cause employment changes, but not vice versa). The research results point to the necessity of taking into account different relationships, whether one- or two-directional, between growth and structural changes in government economic policy. The paper presents a verifiable methodology, which was originally used to identify the analysed relationship in transition countries. |
| first_indexed | 2024-12-24T03:50:43Z |
| format | Article |
| id | doaj.art-58eaf64f8a1440feac667b1ac6b15e15 |
| institution | Directory Open Access Journal |
| issn | 1611-1699 2029-4433 |
| language | English |
| last_indexed | 2024-12-24T03:50:43Z |
| publishDate | 2018-11-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Journal of Business Economics and Management |
| spelling | doaj.art-58eaf64f8a1440feac667b1ac6b15e152022-12-21T17:16:35ZengVilnius Gediminas Technical UniversityJournal of Business Economics and Management1611-16992029-44332018-11-0119310.3846/jbem.2018.6580Growth and structural changes in transition countries: the chicken or the egg?Magdalena Olczyk0Aleksandra Kordalska1Faculty of Management and Economics, Gdańsk University of Technology, Gdańsk, PolandFaculty of Management and Economics, Gdańsk University of Technology, Gdańsk, PolandThe objective of this study is to test empirically the relationship between structural changes (changes in gross value added and employment) and economic growth. We used a panel Granger-causality analysis based on annual data for eight transition countries, covering the period 1995–2011. The main finding is that the causality relations analysed are heterogeneous processes and are identified more often when we measure structural changes by value added than by changes in employment. Among the countries analysed, we separate a subgroup of economies with very strong bilateral causality (small countries such as Latvia, Lithuania, and Estonia), a subgroup in which no causal relationships are observed (e.g., Hungary in the case of employment), and a group with a one-directional relationship (e.g., Poland, where GDP changes cause employment changes, but not vice versa). The research results point to the necessity of taking into account different relationships, whether one- or two-directional, between growth and structural changes in government economic policy. The paper presents a verifiable methodology, which was originally used to identify the analysed relationship in transition countries.https://journals.vgtu.lt/index.php/JBEM/article/view/6580CEE countrieseconomic growthGranger causalityindustriespanel datastructural changes |
| spellingShingle | Magdalena Olczyk Aleksandra Kordalska Growth and structural changes in transition countries: the chicken or the egg? Journal of Business Economics and Management CEE countries economic growth Granger causality industries panel data structural changes |
| title | Growth and structural changes in transition countries: the chicken or the egg? |
| title_full | Growth and structural changes in transition countries: the chicken or the egg? |
| title_fullStr | Growth and structural changes in transition countries: the chicken or the egg? |
| title_full_unstemmed | Growth and structural changes in transition countries: the chicken or the egg? |
| title_short | Growth and structural changes in transition countries: the chicken or the egg? |
| title_sort | growth and structural changes in transition countries the chicken or the egg |
| topic | CEE countries economic growth Granger causality industries panel data structural changes |
| url | https://journals.vgtu.lt/index.php/JBEM/article/view/6580 |
| work_keys_str_mv | AT magdalenaolczyk growthandstructuralchangesintransitioncountriesthechickenortheegg AT aleksandrakordalska growthandstructuralchangesintransitioncountriesthechickenortheegg |