ABSTRACT
The purpose of this chapter is to analyze the determinants of the spatial diversity of labor productivity (materializing technical progress) in Poland and Ukraine in terms of administrative regions. The theoretical basis for this empirical analysis was the gravitational economic growth model, which was an extension of the Solow economic growth model. The basic assumption of the model is that labor productivity in Polish voivodeships and Ukrainian oblasts depends on the capital employed, that is, the capital labor ratio, and from domestic and foreign gravitational effects. This chapter presents the results of a simulation of the trajectory of the labor productivity dynamics in Polish and Ukrainian regions until 2050.
