Low input substitution elasticity in Slovak economy hinders growth potential.
The article estimates how easily workers and machines can be swapped in the Slovak economy. By analyzing data from the National Bank of Slovakia, the researchers found that the ability to switch between labor and capital was relatively low from 1997 to 2014, with a value between 0.03 to 0.11. This suggests that during this time, the Slovak economy was not very flexible in adjusting between using workers and machines.