Analýza celkové produktivity faktorů v České republice v období 1993-2021

The aim of this thesis is to calculate and analyze total factor productivity (TFP) in the Czech Republic and separately in 7 selected sectors of the national economy between 1993 and 2021. The TFP in the Czech Republic was growing from 1996 to 2007. This was a period of foreign direct investment inflows and strong economic growth. After the financial crisis of 2008, TFP growth rates have been trending downwards and even the economic growth between 2014-2018 did not bring a recovery in TFP. This is in line with the empirics of the developed world, where TFP growth has also been consistently slowing down. The TFP of the entire Czech economy is strongly influenced by developments in manufacturing and trade, due to the one-third share of these sectors in the total gross value added of the economy. After 2008, the TFP is trending upwards only in two sectors, which are information and communication activities and professional, scientific and technical activities. On the other hand, the specific sectors of construction and electricity supply, and also transportation and storage, show the lowest sustained growth. The thesis found a positive relationship between institutional quality and the overall level of TFP using international data. An appropriate institutional framework that supports economic activity has the ability to increase the overall level of the TFP in a country. The most problematic elements in the Czech Republic include the area of dealing with construction permits, excessive administrative and fiscal decentralization and distortive effect of labour activity tax treatment.