Abstract:

Abstract: Productivity is the factor that determine the directions of economic development. The aim of the paper is to examine the factors that influence the productivity in the EU Member States. In the paper a multi-level analysis was applied. The research focuses on the problem of how the variables included in output approach, expenditure approach and income approach of GDP's and other variables affect productivity. The years of the analysis cover the period 2013-2020. The research showed that the systematic transformation of the economy towards modern branches in favor of the traditional ones caused an increase productivity. Growth in general government consumption was found to have a negative impact on productivity.