Dual Approach to Growth Accounting in the European Union Member Countries European Countries
Dual Approach to Growth Accounting in the European Union Member Countries European Countries

Author(s): Manuela Raisová
Subject(s): Economy, Supranational / Global Economy, Accounting - Business Administration
Published by: ASERS Publishing
Keywords: accounting; dual approach; data; analysis;
Summary/Abstract: Economic theory says that economic policy instruments are used in order to achieve sustainable economic growth in the long term. Forecast of the future economic development would be prepared much easier if economic growth was constant. The reality is, however, not theory. As we can see, theworldwide growth is far from constant. As stated Romer (2012, p.6), “growth has been rising over most of modern history and average growth rate in the industrialized countries were higher in the twentieth century than in the nineteenth”. An exception to this scheme of increasing growth is slowdown in productivity growth. The globalisation of the world brought strong links between the economies of suchtrade and financial markets. Such close connection brings the acceleration of positive developments in the economy in "good times", while the same acceleration has signed an acceleration of negative developments in the economy in "bad times".

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