Abstract
As the growth accounting method can suggest research benefits, this paper is dedicated to the application of the method in the construction industry. The lack of methodologies for the application of the method in the less developed countries has necessitated the design of the methodology presented in the paper. Once the methodology is composed, comparable results can be obtained on the fulfilment of international academic standards. The paper presents the main methodological problems faced by the author while working on the problem. In addition, it enables the identification of the proximate sources of growth as well as the performance of economic analysis from a comparative perspective of countries at different stages of development. The scientific merit of the paper – the entire group of intangible capital rather than only software will correspond to knowledge based capital. The results suggest that Lithuania is in a rather strong position in terms of productivity growth, but the same could not be said when considering the structure of its main determinants compared with the more developed countries.
Highlights
Inadequate attention paid by Lithuanian scientists to the method of growth accounting compared with the attention given to it by scientists of the more developed economies (Mas 2005; Mas, Quesada 2005; Haskel et al 2015; Haskel et al 2014a; Dal Borgo et al 2012; Dal Borgo 2013), and the lack of comparable results arising from the fulfilment of international academic standards in Lithuania and other less developed countries has necessitated the application of the method to the case of Lithuania
The results indicate that Lithuania should be compared with Australia (0.03%) and the USA (0.02%)
The present paper has certain practical research implications: with the help of the developed methodology, growth and productivity accounts can be expanded and elaborated for the less developed countries, which enables the performance of the economic analysis from a comparative perspective
Summary
Inadequate attention paid by Lithuanian scientists to the method of growth accounting compared with the attention given to it by scientists of the more developed economies (Mas 2005; Mas, Quesada 2005; Haskel et al 2015; Haskel et al 2014a; Dal Borgo et al 2012; Dal Borgo 2013), and the lack of comparable results arising from the fulfilment of international academic standards (see EU KLEMS) in Lithuania and other less developed countries has necessitated the application of the method to the case of Lithuania. The scientific problem of the present paper is the lack of methodologies for the application of the growth accounting method, which would allow results to be obtained on the fulfilment of international academic standards of the EU KLEMS (EU KLEMS) project in the construction industry of the less developed countries (including the case of Lithuania). Journal of Business Economics and Management, 2016, 17(3): 430–443 uses the growth accounting method in the construction industry of a less developed country and approve the methodology for the case of Lithuania. This would enable comparable proximate sources of growth of differently developed economies to be ascertained. Because the main purpose of the present paper is to solve an existing contemporary economic problem defined above and to compose a methodology enabling comparable results to be derived for a less developed country, this will be indicated as a limitation of the current research
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