Decomposition of economic growth in Bulgaria by industry

Abstract

Purpose -The aim of this paper is to present a methodology for the decomposition of economic growth by industry which allows interindustry comparisons. Design/methodology/approach -The paper uses the growth decomposition methodology developed by Ivanov and Ivanov and Webster for tourism and generalizes it for all industries in the national economy. Findings -The methodology is exemplified with analysis of the contribution of specific industries to economic growth in Bulgaria for the period 2000-2005. However, the model presents an approach that is general and can be applied to other countries and industries.Research limitations/implications -The methodology identifies the direct impacts of specific industries on the per capita growth of real gross domestic product/gross value added. Future research might integrate indirect and induced effects in the analysis. The methodology could be further refined by decomposing the gross domestic product/gross value added to their constituent elements. Practical implications -The paper identifies the industries in the Bulgarian economy that generate economic growth. Originality/value -The paper introduces a new methodology for measuring the contribution of specific industries to economic growth. It might be of value to both academics and macroeconomic policy makers.

Research Note:Empirical Assessment of the Tourism-Led Growth Hypothesis — The Case of Vietnam

“…They also used the growth of real GDP per capital as a measure of economic growth and disaggregated it into economic growth generated by tourism and other industries. The methodology is exemplified with an analysis of the contribution of specific industries to economic growth (Ivanov and Webster, 2010). Brida et al (2010) used decomposition to measure the magnitude of the contribution of tourism to the economic growth for Costa Rica.…”

Decomposition of Economic Growth in Sri Lanka: Deep Look into the Service Sector

“…Traditionally, aggregate economic growth is measured in terms of gross national product (GNP) or gross domestic product (GDP), even though alternative metrics are sometimes used. This research builds on the growth decomposition methodology proposed by Ivanov and Webster (2010) [6]. In this research use the growth of real GDP per capita as a measure of economic growth.…”

“…The service gives a highest contribution for economic growth in Sri Lanka and many other countries. Hence this study tries to "decomposition of economic growth in Sri Lanka by service" According to Ivanov and Webster (2010) [6] suggest that a new methodology for measuring the contribution of specific industries to economic growth. It is most value to both academics and macro-economic policy makers.…”

“…It`s important to identify the sector which yield a lowest contribution to the GDP growth and to make strategies to enhance its contribution. Ivanov and Webster (2010) stated that the contribution of specific industries to economic growth in Bulgaria for the period of 2000-2005. This study uses the growth decomposition methodology developed by Ivanov and Webster for tourism and generalizes it for all industries in the national economy.…”

The Regional Polarization of Tourism's Contribution to Economic Growth in Peru: Alternative Solutions

“…The contribution of tourism in the different departments to economic growth has been obtained using the Ivanov and Webster (2007) method, given the lack of Tourism Satellite Accounts at the departmental level in Peru. This technique was generalized for all industries in the national economy by Ivanov and Webster (2010) using data from Bulgaria. In a more recent publication Ivanov and Webster (2013) applied this growth decomposition methodology to measure the impact of tourism using a sample of 174 countries including Peru and considering four territorial levels: global, regional (Africa, Asia, Europe, Latin America and the Caribbean, Northern America and Oceania), sub-regional (for example, Eastern, Western, Southern and Northern Europe) and country levels.…”