Decomposition of economic growth by industry by Stanislav Ivanov and Craig Webster Stanislav Ivanov, Ph. D. – Corresponding author International University College, 3 Bulgaria Str., 9300 Dobrich, Bulgaria E-mail: stanislav.ivanov@unwro.org tel.: +359 58 655622 Craig Webster, Ph. D. University of Nicosia, 46 Makedonitissas Ave., 1700 Nicosia, Cyprus E-mail: webster.c@unic.ac.cy Abstract: The current paper presents a growth decomposition methodology which allows interindustry comparisons. The methodology is exemplified with analysis of the contribution of specific industries to economic growth in Bulgaria. However, the model presents an approach that is general and can be applied to other countries and industries. Key words: economic growth, system of national accounts, gross value added, gross national product, welfare effect, Bulgaria 1