The Department of Macroeconomic Studies and Finance of the Central Statistical Office of Poland, within the so called „experimental statistics”, is carrying out studies to implement KLEMS economic productivity accounts in Polish conditions. These accounts are based on the neoclassical concept of economic growth decomposition initiated by Robert Solow and developed methodologically by Dale Jorgenson and associates.
The economic growth decomposition in KLEMS accounts can take the shape of a gross value added (GVA) decomposition or a gross output decomposition, and for the EU KLEMS consortium of 10 European countries the GVA decomposition is carried out, because it eases international comparisons. Similarly for Poland, the GVA decomposition was performed in the implementation of the KLEMS accounts.
The KLEMS accounts deliver fundamental macroeconomic and mesoeconomic information (according to NACE 2 subdivisions) on the economy and thus represent an important assisting tool for the economic growth researcher. The decomposition of economic growth allows to identify its sources and therefore allows indirectly to interpret its causes. It can be a base for numerous analyses and studies on economic growth, and also be used for international comparisons with the other countries carrying out these accounts.
In Polish conditions this accounting was done in four methodological versions:
- A – Capital without residential capital (without dwellings), labour quality understood as labour composition
- B – Capital with residential capital (with dwellings), labour quality understood as labour composition
- C – Capital without residential capital (without dwellings), labour quality understood as labour compensation level
- D – Capital with residential capital (with dwellings), labour quality understood as labour compensation level
The specifics of Polish dwelling market suggest that in Polish conditions it is appropriate to carry out the decomposition of economic growth without dwellings in the capital stock (graphs and tables A and C). However, for international comparisons they should be included (graphs B and D) since this is the way proceeded by the 10 European EU KLEMS countries. Labour quality in the traditional KLEMS accounts is understood as labour composition (graphs and tables A and B), i.e. the structure of labour factor by sex, age and education attainment groups. However, changes in labour compensation level (graphs and tables C and D) can also be interpreted as changes in labour quality that consider more elements.