The aim of this paper is to present a methodology for the decomposition of economic growth by industry which allows interindustry comparisons.
The paper uses the growth decomposition methodology developed by Ivanov and Ivanov and Webster for tourism and generalizes it for all industries in the national economy.
The methodology is exemplified with analysis of the contribution of specific industries to economic growth in Bulgaria for the period 2000‐2005. However, the model presents an approach that is general and can be applied to other countries and industries.
The methodology identifies the direct impacts of specific industries on the per capita growth of real gross domestic product/gross value added. Future research might integrate indirect and induced effects in the analysis. The methodology could be further refined by decomposing the gross domestic product/gross value added to their constituent elements.
The paper identifies the industries in the Bulgarian economy that generate economic growth.
The paper introduces a new methodology for measuring the contribution of specific industries to economic growth. It might be of value to both academics and macroeconomic policy makers.
