DRIVERS OF ECONOMIC GROWTH: CASES OF POST-WAR RECOVERY
DOI:
https://doi.org/10.17721/1728-2667.2023/223-2/1Keywords:
economic growth, drivers of economic growth, factors of production, economic growth, drivers of ectotal factor productivity (TFP), post-war recovery, decomposition of economic growth, institutionsAbstract
Background. The relevance of the study of the experience of successful post-war recovery of the countries in the context of identification and analysis of the economic growth drivers for Ukraine is undoubted at the moment, taking into account the need to develop effective economic policies and strategies to promote the reconstruction of the economy and embark on the trajectory of long-term economic growth. The purpose of the study is to empirically determine the drivers of economic growth in countries that are examples of successful post-war recovery. Among such countries are Japan, the Republic of Korea, and Israel. They are unique examples of a combination of global, economic, political, and cultural factors of economic growth, which is the object of this study.
Methods. The method of decomposition of the growth rate of GDP in relation to the growth rates of its factors is used to identify the contribution of production factors in ensuring economic growth.
Results. The study is the calculation of the contributions of production factors to the growth of GDP in Japan, the Republic of Korea, and Israel during 1951–2019. Based on these calculations the analysis of the key drivers of economic growth was carried out.
Conclusions. Analysis of the drivers of economic growth in the post-war period of countries that are patterns of successful economic recovery showed that the main factor of post-war recovery is total factor productivity, which includes new technologies, investments in scientific research, promotion of innovative activities, as well as a favorable business environment, political stability, and institutions. The second most influential factor in the period of post-war recovery is the accumulation of physical capital. As for the main measures of economic policy, first of all, it should be emphasized the liberalization of economies, the availability of a sufficient amount of external financing, and the export orientation of the countries. In addition, the experience of post-war recovery has shown that the availability of natural resources does not play a decisive role in promoting economic growth.
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