Labour Productivity, Economic Growth and Global Competitiveness in Post-crisis Period

Abstract

Labour productivity and economic growth are key factors to maintain and improve the competiveness of nations in the global market. The paper is devoted to the analysis of recent trends of labour productivity and economic growth in post-crisis period in comparison with the trends in pre-crisis and crisis periods. The paper analyzes the impact of changes in labour productivity and its effect on the nation's global competitiveness. The research focuses on the European Union countries that experienced the most severe crisis and afterwards the most rapid recovery in post-crisis period (as Latvia, Lithuania, and Estonia). The research findings argue that there are weak or no relations between productivity increase and economic growth in pre-crisis period and the first phase of post-crisis period; however, the increase of productivity during the crisis is a significant driver of the economy after a period of time.