Abstract
This study aims at empirically investigating the drivers of sustainable economic growth in EU-28 countries. By means of panel data regression models, in the form of fixed and random effects models, alongside system generalized method of moments, we examine several drivers of real gross domestic product (GDP) growth rate, as follows: higher education, business environment, infrastructure, technology, communications, and media, population lifestyle, and demographic changes. As regards higher education, the empirical results show that expenditure per student in higher education and traditional 18–22 year-old students are positively linked with sustainable economic growth, whereas science and technology graduates negatively influence real GDP growth. In terms of business environment, total expenditure on research and development and employment rates of recent graduates contributes to sustainable development, but corruption perceptions index revealed a negative association with economic growth. As well, the results provide support for a negative influence of infrastructure abreast technological measures on economic growth. Besides, we found a negative connection between old-age dependency ratio and sustainable economic growth.
Highlights
The 2030 Agenda for Sustainable Development [1] aims at addressing the key challenges for the 21st century towards people, planet, and prosperity
The labor force become more trained and skilled, which is vital for the sustainable development of the economy
We find that science and technology graduates exert a negative and significant influence on economic growth, supported by both FE estimations (Equations (2), (3), (5) and (6)), and system GMM (Equation (11))
Summary
The 2030 Agenda for Sustainable Development [1] aims at addressing the key challenges for the 21st century towards people, planet, and prosperity. The three related pillars, namely economic, environmental, and social, should be necessarily addressed via supportive policies in order to attain sustainable development. It is acknowledged that educational improvements support employability, lessens poverty, whereas research and development joined with resources that are more efficient engender competitiveness and creates jobs. A smart growth is essential towards developing an economy based on knowledge and innovation, being requisite more effective investments in education, research, and innovation. There are concerns about developing a connected digital single market [2], which can create up to EUR 250 billion of additional growth in Europe, generating multiple new jobs for younger job seekers, as well as a vibrant knowledge-based society [3]. Seetanah [4] noticed that education promotes economic growth and improves people’s lives by increasing the efficiency of the labor force, fostering democracy, improving health, and reducing fertility, as well as enhancing equality
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