allocation, employs growth accounting in Bulgaria relative to a frontier country (Germany), and tries to explain the Total Factor … better and a "catching up" effect of Bulgaria’s Total Factor Productivity levels towards those of Germany has been observed … convergence towards Germany’s productivity levels. …

Germany remains Europe's largest and most diversified source of new technology, but still lags in the fastest growing … had supported Germany's leadership in the high-tech industries of the early twentieth century - automobiles, machinery … to new technological stimuli. In addition, Germany's bank-centered capital and inflexible labor markets have long …