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Over the last decades various economic approaches have been used to identify the sources of economic growth across individual countries. In our paper we use Growth Accounting approach developed by Solow to analyse the significant determinants of economic growth in ten Central and Eastern European countries over the time period from 2004 to 2012. The data source is Total Economy Database provided by The Conference Board. Total Economy Database is a comprehensive database with annual data covering GDP, population, employment, hours, labour quality, capital services, labour productivity, and total factor productivity for about 123 countries in the world. Total Economy Database was developed by the Groningen Growth and Development Centre (University of Groningen, The Netherlands) in the early 1990s and the database was extended with a module on sources of growth in January 2010. The contribution of labour quantity and quality, Information and Communication Technology capital services, non-Information and Communication Technology capital services and Total Factor Productivity to the growth of Gross Domestic Product is identified. Capital and Total Factor Productivity are found as a main source of economic growth. Moreover, the impact of Foreign Direct Investment inflow, investment on Research and Development, openness of the economy and life expectancy on Gross Domestic Product is identified.

Economic growth and its determinants across CEE countries