Labor productivity and economic growth in selected SEE countries after the Great Recession of 2008

Abstract

The aim of this paper is to analyze the labour productivity and economic growth in countries from South Eastern Europe in the period after the Great Recession of 2008 and to examine the interdependence between labor productivity and economic growth. Labor productivity is one of the factors that determinate the economic growth and one of the reasons for differences in economic development among countries. For that purpose, the labour productivity in selected SEE countries will be calculated. Boosting employment and productivity are among the key objectives for policymakers in the countries. Economic recovery strongly depends on productivity increase during the crisis and after a period of time it results in economic growth. The results show that the relation between the labour productivity and economic growth is not stable. Between 2000 and 2008 labour productivity provided solid support for growth. Since the global financial crisis broke, labour productivity growth has fallen.