Growth Accounting for Hotel and Restaurant Industries

Abstract

The availability of new data files from an EU research project has made it possible to analyze the sources of long-term supply growth in the hotel and restaurant industries of eight selected countries. This study is the first to use the growth accounting model to analyze growth determinants in the hotel and restaurant sector in an international context. The model allows isolating the impact of capital services of information and communication technology and non—information and communication technology, the impact of quantitative labor inputs measured by working hours and labor composition, and the influence of multifactor productivity on value-added growth in the hotel and restaurant industry. It provides a conceptual framework, which is of fundamental importance for policy evaluation. An analysis of the results shows that in most cases the greatest contribution to growth is derived from the quantitative labor input, followed by capital services of non— information and communication technology.