Structural changes in the economy in the light of the neoclassical approach. A case study: Spain and Poland

The Spanish and Polish economies are often compared due to their similar
potential, as far as area, population and importance of the agricultural sector
are concerned. However, the division created by an 18-year time distance
between their EU accession fundamentally influences their experience of the
market economy, as well as the extent and pace of structural changes.
The problem, which was posed in this article, in the context of comparative
analysis, was identifying the paths of economic development of Spain and
Poland, facing the fact that the three-sector structure of both economies,
measured by the share in gross value added of agriculture, industry and service
sector have been generally and apparently similar in the last decade. It is easy
to find similarities, as far as high levels of unemployment are concerned, in
some periods. However, their ways of achieving economic development are
fairly different and lead to different results of effective character.
The Spanish economic transformation took place mainly as a result of deep,
effectiveness changes in agriculture. The Polish economic transformation took
place mainly in the industrial sector. In both countries there is a completely
different picture of relations between labour and capital inputs, as well as
tendencies in changes of labour and capital productivity. As a result, economic
growth, if we look at it from the point of traditional growth factors, has a totally
different picture in Spain and Poland.
In order to define the factors differentiating the economic development
we used a neoclassical approach, taking into account the supply side of the
economy. The research covers the dynamics and size of such parametres as:
real GDP, employment, gross fixed capital formation, total factor productivity
– TFP, measured by the Solow residual, labour productivity and value of capital
per one person employed. The researched period comprises the years between
1980-2005 in the case of Spain, and 1995-2005 in the case of Poland. Time
series used in the analysis come from the databases of Eurostat and OECD.
Journal: 
21
Authors: 
Małgorzata Kokocinska
Marcin Puziak
Attached file: 

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