Publications - Working Papers IER SAS

The paper deals with the problem of capital endowment lag in the Slovak economy. It proves that the undercapitalization in Slovakia has significantly eased since the year 2004. The undercapitalization which was perceived as a barrier to a greater performance of former transition economies was mainly present in the sectors which have been traditionally represented already in the former socialist economies. It was not such a problem for sectors which newly formed only in the post-socialist period. Although the Slovak economy lagged in the capital endowment behind the most advanced economies, the position of the Slovak Republic in the group of Central and Eastern Europe was relatively favorable. However, in the process of undercapitalization overcome, the Slovak Republic did not experience similar structure of fixed capital as it is in the most advanced economies. The dynamics of machinery and equipment accumulation was particularly high along with insignificant accumulation of intellectual assets.