Publications - Working Papers IER SAS

Results of economic growth improve people´s living conditions /social convergence outco-mes/ only with significant time lag. One of the causes is the slow advancement of the price convergence. Balassa-Samuelson theorem associate it with low productivity of labour and non-tradable nature of production in the service segment lagging countries.
An appraisal of B.-S. theorem is based on analysis of the services in economies of the EU. The finding is that the critical part of converging economies is not a segment of services, but the sector of domestic enterprises. The result of analysis is as well a rough projection of the future structure development of the Slovak economy.