scholarly journals Determinants of Economic Growth in the European Union Countries

2021 ◽  
Vol 101 (4) ◽  
pp. 357-369
Author(s):  
Emília Zimková ◽  
Michaela Vidiečanová ◽  
Petra Cisková
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
System Development ◽  
Financial System ◽  
Time Span ◽  
The European Union ◽  
European Union Countries ◽  
Corruption Perception ◽  
Determinants Of Economic Growth ◽  
Access Efficiency

This paper reassesses the long-debated relationship between the financial system development and economic growth. We use not only indicators for financial access, efficiency, stability and depth of the bank-oriented financial sector, but we also consider Eurozone membership, corruption perception and competitiveness of countries to examine the determinants of economic growth. We apply a panel data approach to 27 European countries over the 2004–2017 period. By splitting the time span, we examine whether the effect of financial system development, Eurozone membership, corruption perception and competitiveness on economic growth is affected by the occurrence of financial and debt crises. Our results indicate that loans to private sector do not always support economic growth. Our research also reveals that corruption perception has a negative impact on economic growth, and so does membership in Eurozone during a crisis.

scholarly journals MACROECONOMIC INDICATORS OF HAPPINESS: CASE OF THE EUROPEAN UNION COUNTRIES

2021 ◽  
Author(s):  
Nerajda FERUNI ◽  
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Life Satisfaction ◽  
Income Distribution ◽  
Fixed Effects ◽  
Least Square ◽  
The European Union ◽  
European Union Countries ◽  
Macroeconomic Indicators ◽  
Determinants Of Economic Growth

The aim of this paper is to test empirically the relationship between life satisfaction, another term used for happiness, and macroeconomic indicators such as GDP per capita, which is a proxy for economic growth, unemployment, inflation, income distribution and government expenditure in the European Union countries during the period of 2005-2017. The chosen variables are some of the most significant determinants of economic growth as well. Using the Fixed Effects model, which falls under the Panel Generalized Least Square method, the empirical results are in accordance with the literature review and suggest that unemployment and inflation have negative significant impacts on life satisfaction. Additionally, higher government expenditures and a higher level of economic growth lead to a higher level of life satisfaction in the EU countries, while unfair income distribution leads to a lower level of life satisfaction. Keywords: life satisfaction, macroeconomic indicators, economic growth, EU

scholarly journals Are International Indices Good Predictors of Economic Growth? Panel Data and Cluster Analysis for European Union Countries

2021 ◽  
Vol 13 (11) ◽  
pp. 6003
Author(s):  
Manuel Carlos Nogueira ◽  
Mara Madaleno
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Panel Data ◽  
Human Development ◽  
Empirical Studies ◽  
The European Union ◽  
Global Competitiveness ◽  
Environmental Performance Index ◽  
European Union Countries ◽  
And Cluster Analysis

Every year, news about the publication of rankings and scores of important international indexes are highlighted, with some of the most prestigious being the Global Competitiveness Index (GCI), the Human Development Index (HDI), the Ease of Doing Business (EDB), the Environmental Performance Index (EPI) and the Global Entrepreneurship (GEI). A country’s progression in these indices is associated with economic growth, especially since several empirical studies have found evidence to reinforce these beliefs, the indices having been built based on the scientific literature on economic growth. Building a database on these indices for European Union countries between 2007 and 2017 and using panel data methodologies and then 2SLS (Two-Stage Least Squares) to solve the problem of endogeneity, we verify empirically through panel data estimates, what is the relationship between the mentioned indices and the European Union countries’ economic growth for the period. However, as the European Union is made up of diverse countries with different economic and social realities, we divided the countries into six clusters and made an individual interpretation for each one. We found that human development and competitiveness play an important role in economic growth, and entrepreneurship also impacts this growth. Regarding income distribution, applying the Gini index, we found that only human development mitigates inequalities.

scholarly journals Trade Balance Effects on Economic Growth: Evidence from European Union Countries

Economies ◽  
2020 ◽  
Vol 8 (3) ◽  
pp. 54
Author(s):  
Deimante Blavasciunaite ◽  
Lina Garsviene ◽  
Kristina Matuzeviciute
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Trade Balance ◽  
Fixed Effects ◽  
Negative Impact ◽  
Trade Deficit ◽  
Multivariate Regression Analysis ◽  
The European Union ◽  
Linear Effect ◽  
The Impact

A growing number of recent research analyse the trade balance impact on economic growth. However, ambiguous results of studies imply the need for the research as the deteriorating trade balance hinders economic growth. This research aims to investigate the impact of the trade balance on economic growth as well as to evaluate it during the periods of trade deficit. Our estimations are based on the European Union (EU) 28 countries panel data over the period of 1998–2018, using the OLS method of multivariate regression analysis with fixed effects and focusing on two strategies: (i) including all trade balance periods, and (ii) adding deficit dummy variable seeking to evaluate whether during deficit periods we can find different and significant effect on economic growth. Evaluating all trade balance periods, the obtained results indicate the negative and lagging impact of the trade balance on economic growth, and no significant differences of the impact were identified during the deficit periods. The deterioration of trade balance reduces average economic growth and from linear relationship evaluation, we can state that it does not matter whether it starts from trade deficit or surplus result. The results obtained may also obscure the possibility of a non-linear effect, which would suggest a stronger negative impact on economic growth when the trade balance deteriorates in the presence of a large trade deficit. When discussing directions for further research it would make sense to consider other factors, such as the size of the deficit and its permanence.

scholarly journals The Relative Effects of Economic Growth, Environmental Pollution and Non-Communicable Diseases on Health Expenditures in European Union Countries

2019 ◽  
Vol 16 (24) ◽  
pp. 5115 ◽  
Author(s):  
Daniel Badulescu ◽  
Ramona Simut ◽  
Alina Badulescu ◽  
Andrei-Vlad Badulescu
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Environmental Pollution ◽  
Health Expenditure ◽  
Negative Impact ◽  
Health Expenditures ◽  
Communicable Diseases ◽  
Non Communicable Diseases ◽  
European Union Countries ◽  
Short Run

National and global health policies are increasingly recognizing the key role of the environment in human health development, which is related to its economic and social determinants, such as income level, technical progress, education, quality of jobs, inequality, education or lifestyle. Research has shown that the increase of GDP (Gross Domestic Product) per capita can provide additional funds for health but also for environmental protection. However, often, economic growth is associated with the accelerated degradation of the environment, and this in turn will result in an exponential increase in harmful emissions and will implicitly determine the increasing occurrence of non-communicable diseases (NCDs), mainly cardiovascular diseases, cancers and respiratory diseases. In this paper, we investigate the role and effects of economic growth, environmental pollution and non-communicable diseases on health expenditures, for the case of EU (European Union) countries during 2000–2014. In order to investigate the long-term and the short-term relationship between them, we have employed the Panel Autoregressive Distributed Lag (ARDL) method. Using the Pedroni-Johansen cointegration methods, we found that the variables are cointegrated. The findings of this study show that economic growth is one of the most important factors influencing the health expenditures both in the long- and short-run in all the 28 EU countries. With regards to the influence of CO2 emissions on health expenditure, we have found a negative impact in the short-run and a positive impact on the long-run. We have also introduced an interaction between NCDs and environmental expenditure as independent variable, a product variable. Finally, we have found that in all the three estimated models, the variation in environmental expenditure produces changes in NCDs’ effect on health expenditure.

THE COMPOUNDS BETWEEN THE ECONOMIC SITUATION AND ENVIRONMENTAL IMPACT OF AGRICULTURAL HOLDINGS IN THE EUROPEAN UNION COUNTRIES

2018 ◽  
Vol XX (3) ◽  
pp. 59-64
Author(s):  
Aleksander Grzelak
Keyword(s):  
European Union ◽  
Regression Analysis ◽  
Panel Data ◽  
Environmental Impact ◽  
Negative Impact ◽  
Economic Situation ◽  
The European Union ◽  
Eu Countries ◽  
European Union Countries

The main purpose of the article is to examine the compounds between economic results of agricultural holdings and their impact on the environment. The research was conducted on a group of 23 EU countries that have been members since at least 2004. The time scope of the analyses concerns the years 2004-2015. The study uses regression analysis based on panel data. It was found that the more favorable economic situation of the surveyed group of agricultural holdings is accompanied by a stronger negative impact on the environment. The strongest relative environmental impact (from the perspective of material pressure on the environment) was recorded for investments.

Financial Services Input as a Source of Economic Growth in the European Union Countries

2016 ◽  
Vol 63 (3) ◽  
pp. 289-308
Author(s):  
Joanna Wyszkowska-Kuna
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Financial Services ◽  
The European Union ◽  
Business Services ◽  
Intermediate Inputs ◽  
European Union Countries ◽  
Production Growth ◽  
Knowledge Intensive ◽  
Factor Inputs

The aim of this paper is to study and compare the importance of intermediate demand for financial services for the growth of production in the European Union countries. In the study the methodology introduced by Jorgenson et al. (1987) is used. This assumes that changes in the production (in real terms) result from changes in intermediate inputs of raw and manufacturing materials and services, as well as in factor inputs (labour and capital) and in total factor productivity. The advantage of this method is the ability to calculate the contributions of different components of intermediate inputs (including service inputs – total or with respect to particular service categories) to production growth in the whole economy and in individual industries. The study is carried out with respect to financial services, but their contribution to economic growth is compared with the contribution of knowledge--intensive business services that have been already recognized as affecting economic and productivity growth. The data used in the study come from the World Input-Output Database. The analysed period covers the years 1995–2009, owing to the availability of relevant data.

scholarly journals Does financial system development, capital formation and economic growth induces trade diversification?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sohail Amjed ◽  
Iqtidar Ali Shah
Keyword(s):  
Economic Growth ◽  
System Development ◽  
Negative Relationship ◽  
Financial System ◽  
Capital Formation ◽  
Sultanate Of Oman ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
Oil Sector

PurposeThe purpose of this study is to investigate long-run and short-run relationships between trade diversification, financial system development, capital formation and economic growth.Design/methodology/approachARDL estimation approach is applied to analyze long-run and short-run relationships between the financial system development, capital formation, economic growth and trade diversification in case of the Sultanate of Oman over the period 39 years starting from 1979 till 2017.FindingsThe results show that financial system development and economic growth has a positive impact on trade diversification in the short-run and long-run. However, capital formation has a negative impact on trade diversification in the short run and long run. The negative relationship between trade diversification and capital formation implies that over the period of study, the investment in capital goods was made to enhance the production capacity of the oil sector to maximize revenue.Research limitations/implicationsThis research is limited to analyze long-run and short-run relationship between the financial system development, capital formation and economic growth and trade diversification in case of Sultanate of Oman.Practical implicationsTo achieve the diversification goal, the policymakers need to formulate policies to strengthen the financial system and invest in infrastructure development to promote the non-oil sector. The research findings of this study will provide insights to the policymakers to formulate an effective diversification policy.Originality/valueThis research contributes to the existing literature by providing empirical evidence of the short-run and long-run analysis of the selected variables in the context of an oil-dependent country.

scholarly journals Appraisal of Financial Situation of the Polish Banking Sector from 2008 to 2012

Management ◽  
2013 ◽  
Vol 17 (2) ◽  
pp. 177-189
Author(s):  
Paweł Trippner
Keyword(s):  
Economic Development ◽  
Financial Markets ◽  
Financial Institutions ◽  
Banking Sector ◽  
Banking System ◽  
Financial System ◽  
The European Union ◽  
Financial Situation ◽  
Financial Condition ◽  
European Union Countries

Summary Appraisal of Financial Situation of the Polish Banking Sector from 2008 to 2012 The banking system is a very important element of the financial system of a country. As institutions of public trust, banks play a crucial role in the process of transforming savings into investments, which directly affects the country’s economic development. Maintaining the banking sector in a good financial condition guarantees stability of the financial system and economic development of Poland. The article aims to present the essence of operations of banks as financial institutions, present their role in the economy, and describe various methods of appraising their financial condition. In order to fulfil the above goals, a research hypothesis is put forward stating that the financial condition of the banking sector in Poland deteriorated in the analysed period as a result of an adverse impact of turbulence in financial markets and problems in banking sectors in the European Union countries.

scholarly journals Economic growth in an oil-dominant economy of Nigeria: The role of financial system development

2020 ◽  
Vol 8 (1) ◽  
pp. 1810390 ◽  
Author(s):  
Oliver E. Ogbonna ◽  
Ikechukwu A. Mobosi ◽  
Okwudili W. Ugwuoke
Keyword(s):  
Economic Growth ◽  
System Development ◽  
Financial System
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