productivity (TFP) growth in a sample of 30 European economies for the period 1994-2005. In most of Western Europe, we find a … deceleration of TFP growth since 2000. However, the economies of New Europe exhibit a higher level of TFP growth overall and have … slowed less than those of Old Europe. In the new market economies of Central and Eastern Europe, we find both high TFP growth …

and widening gulf between the core and the periphery, the North and the South, western and eastern Europe …