The Growth Accounting for Industry and Services of Slovakia and Czechia

The last economic crisis has brought many questions and few answers. The crisis has shown how economies are internally vulnerable to external factors. Internal vulnerability is also attributed to the use of available resources in the economy. The aim of the article was to find out how the individual factors of industry and services contribute to total production and economic growth. We used the method of growth accounting: a dual approach that allowed us to track the contribution of individual inputs to production and economic growth. We wanted to prove that if one factor had at least a 5% greater share of overall growth than other factors for the whole economy, then this factor would be the main one for the individual sectors of the economy as well. Verification was carried out for two countries - Slovakia and Czechia in the crisis and the post-crisis period (2008-2016). We note that there was only one country whose main factor of economic growth was identical in both sectors (industry and services) and for the economy as a whole. It was Czechia and the factor was TFP.