Total factor productivity gap between the “New” and “Old” Europe: an industry-level perspective

The main goal of this article is to investigate the source productivity growth for Central and Eastern Europe (CEE) countries, at industry level, based on Schumpeterian creative destruction mechanisms. Our study provides valuable insights into drivers CEE which are vital policy makers. To measure productivity, we calculate Total factor Productivity (TFP) raw labour, level. There a substantial gap level between core European countries (EU14). result econometric analysis suggests that further country lies behind frontier, higher rate TFP growth, i.e. convergence process.