BETA CONVERGENCE ANALYSIS OF GROSS VALUE ADDED IN THE HIGH-TECHNOLOGY MANUFACTURING INDUSTRIES

The paper examines the recent developments in the high-technology manufacturing sectors in the EU28 countries, focusing on the β-convergence of gross value added in the Manufacture of computers, electronic, and optical products, and the Manufacture of basic pharmaceutical products and pharmaceutical preparations. We employ two dynamic panel models estimated using the system of generalized method of moments (GMM) to address the risk of an endogeneity bias. The panel data analysis indicates a higher convergence for the Manufacture of computer, electronic, and optical products at 16.4% compared to 2.2% for the Manufacture of basic pharmaceutical products and pharmaceutical preparations, which is consistent with the existence of fewer barriers and higher exposure to competition in the case of the first analyzed sector. In the context of the role of the high-technology manufacturing industries as an engine of growth and the existing performance differences between the EU28 countries in terms of gross value added in the analyzed sectors, we investigated the β-convergence for two groupings EU15 and the new EU member states. We found that the new EU member states display a higher β-convergence rate than EU15, but also that they have a lower capital intensity. The result highlights the potential risk of some of the new EU member states becoming laggers in terms of the underlying factors behind gross value added as investment and labour force.

The Innovative Impact of Insurance for Economic Growth: The Evidence from New EU Member States

Insurance market activity, both as a financial intermediary and a provider of risk transfer and indemnification, may contribute to economic growth by allowing different risks to be managed more efficiently and by mobilizing domestic savings. During the last decade, there has been faster growth in insurance market activity, particularly in emerging markets given the process of liberalization and financial integration, which raises questions about its impact on economic growth.The aim of this paper is to examine relationship between insurance sector development and economic in 11 new EU member states from CentralandEasternEurope, using annual data fortheperiod 1999-2018. We apply dynamic and fully modified ordinary least squares to estimate the relationship between the variables. The results of our study indicate there are a positive and a significant relationship between insurance, measured through penetration, and economic growth Thus, functions of insurance companies - providing means of risk management and performing mobilization and allocation of resources - are important for economic growth and is in line with previous studies and with our hypothesis These results could be useful for regional governments that seek to improve economic growth as they suggest the need for implementation of stimulative policies for the development of insurance industry

Comparison of Renewable Energy Sources in ‘New’ EU Member States in the Context of National Energy Transformations

The European Union strives to create sustainable, low-carbon economies; therefore, energy policies of all member states should move towards renewable energy sources (RES). That concerns also the so-called new EU member states. These countries, on the one hand, are characterized by significant historical similarities in terms of post-communist legacy and adopted development strategies linked with the EU membership, and on the other hand, by significant social, economic and environmental differences resulting from different transformation and development paths and conditions. The question remains how the selected countries should cope with actions in the field of national energy transformations to confront the multiple challenges linked to assuring a significant level of sustainable development. In order to be successful, it is necessary to conduct an effective and rapid changes in the energy industry, which should be preceded by an analysis of the differentiation of countries in terms of their potentials. The results of such analyses should be helpful in selecting the most appropriate strategies for transformation of the described industry. Therefore, the purpose of the article is to assess the new EU member states for RES diversification and identify similar subgroups of countries using cluster analysis, taking into account the percentage share of individual renewable energy sources in total renewable energy production. This was done for the years 2010, 2015 and 2019 which should allow us to demonstrate the differences between them as a group and also reveal changes recorded over time for a single country. Ward’s method was used for the analysis. The presented approach to the analysis of energy production enabled the acquisition of new knowledge in this field and supported the assessment of the current state of RES. The results obtained can be used in countries of comparable specificity to undertake activities of similar nature in relation to internal energy production, technological development or common energy policy.

The role of renewable energies in the new EU member states

This article provides an overview of the structure and utilization of the new EU member states (EU-13) energy consumption. During the analysis, it was determined which non-renewable energy carriers were replaced by renewables ones. The replacement of energy sources with each other was analyzed by means of a correlation matrix. Results indicated that coal was replaced by renewable energies in Poland, Czech Republic, Slovakia, Bulgaria and Cyprus. Furthermore, the renewables basically replaced oil in Malta and gas was replaced by renewables in Lithuania. In other countries the relation between renewables and non-renewables could not be detected. The structure of energy production in the EU countries were different due to the differences of natural endowments. The main goal of the European Union energy policy is to reduce the CO2 emission by decreasing the fossil fuel consumption and this finding new ways to replace traditional energy sources is of utmost importance.