Economic Growth In Europe Research Articles

Analysis of agricultural emissions and economic growth in Europe in search of ecological balance

Abstract This study analyses the relationship between economic growth, measured by gross value added in agriculture, and greenhouse gas emissions from the sector in 30 European countries during the period 2012–2021. The aim is to assess whether the increase in agricultural production leads to a corresponding increase in harmful emissions. Regression analysis is applied to establish linear statistical dependencies between variables, cluster analysis to group countries, and analysis of trends in the dynamics of indicators. The results show significant differences between countries, with no universal relationship between economic growth and emissions. A “decoupling” between growth and emissions is observed in some countries, demonstrating the potential for “green growth.” Regional and structural differences, as well as the level of technological development, stand out as key factors determining the relationship between economic growth and emissions, highlighting the need for an individualised approach in formulating policies for the sustainable development of the agricultural sector.

Evaluating the spatial mismatch between population and factor endowments: The case of the European Union

ABSTRACT Considerable research has been conducted on the trade-off between reducing regional inequality and promoting regional growth. However, there is a lack of empirical research exploring the relationship between this trade-off and the spatial mismatch between the distribution of regional populations and the spatial distribution of regional factor endowments. This paper assesses the existence of spatial mismatches between production factors and populations in European regions, with a focus on how these imbalances might affect regional disparities and growth. First, we compute spatial mismatch indices for capital stock and employment in relation to the distribution of population. Second, we use a vector autoregressive (VAR) approach to identify dynamic interactions in the short run. The results indicate that the spatial mismatch between population and labour plays a key role in the trade-off between European economic growth and regional inequality. The findings suggest that eliminating spatial mismatches between the spatial distribution of population and labour could lead to an increase in both economic growth and regional inequality. Moreover, the implementation of regional policies for resource allocation based on population-related criteria does not appear to mitigate regional economic inequality.

European integration and economic growth in emerging Europe: the role of institutions and policy factors

ABSTRACT The purpose of this study is to contribute to an investigation of the role of European integration as a potential growth driver or convergence engine for emerging Europe. We classify emerging Europe into two groups of economies: (1) 11 new EU member states from Central and Eastern Europe; and (2) six EU candidate countries from the Western Balkans. Our results are also highly relevant for the so-called ‘association trio’ within the EU’s framework of Eastern partnership. The more specific research objectives are to explore (1) what the main driving forces behind growth dynamics in post-communist economies in Europe are; and (2) whether the experience of fast-reforming new EU member states can be replicated or adapted to the EU candidate countries. We provide evidence that the process of European integration holds strong transformative power to accelerate institutional progress and support economic growth.

Impact of Cost of Capital on European Economic Growth: The Role of IFRS Mandatory Adoption

Since 2005, the International Financial Reporting Standards (IFRS) mandatory adoption in the European Union has played a pivotal role to reduce financing costs which has influenced positively economic growth across member states. Thus, this study examines the effect of Cost of Capital on Economic Growth under IFRS mandatory adoption in 17 European countries between 1994 and 2021 using Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) and System Generalized Method of Moments (GMM-system) methods. The findings reveal a positive correlation between the Cost of Capital and Economic Growth under IFRS adoption. Specifically, the model estimates indicate that the Cost of Capital contributes to a 0.58% increase in Economic Growth in the PMG-ARDL framework. Moreover, the GMM-system model underscores the significance of IFRS adoption in reducing the Cost of Capital, leading to a 0.52% increase in Economic Growth. These results provide insights into the benefits of adopting international accounting standards and highlight the importance of institutional and financial factors in shaping the economic impact of adopting accounting standards.

European business cycles and economic growth, 1300–2000

The modern business cycle features long expansions combined with short recessions, and is thus related to the emergence of sustained economic growth. It also features significant international co-movement, and is therefore associated with growing market integration and globalisation. When did these patterns first appear? This paper explores the changing nature of the business cycle using historical national accounts for nine European economies between 1300 and 2000. For the sample as a whole, the modern business cycle emerged in the nineteenth century.

Household debt and economic growth in Europe

Abstract We investigate the role and impact of household debt on the economic performance of European economies during the double-dip recession of 2008–2013. We use a loan-level data set of millions of residential mortgages originated between 2000 and 2013 to calculate regional indicators of household debt. The granular information allows us to construct a measure of interest rate mispricing during the housing boom that we use to identify the effect of a credit shock (CS) on household debt. Our analysis provides three main conclusions. First, in the period 2004–2006, the measure of CS was negative in most European regions which indicates that credit conditions were significantly relaxed relative to earlier years. Second, we find that regions in which household leverage increased more rapidly during the 2002–2007 period experienced a more severe decline in output and employment after 2008. Third, we find that the CS had the largest effect on increasing leverage for the low-income and the middle-income households, although the leverage of the high-income households represents a more powerful predictor of the decline in economic activity.

Innovation-Driven E-Commerce Growth in the EU: An Empirical Study of the Propensity for Online Purchases and Sustainable Consumption

The e-commerce sector has experienced significant growth in the past two decades, outpacing other economic sectors and contributing to sustainable consumption, increased labour productivity, competitiveness, consumer incomes, and GDP growth. This trend is expected to continue, making e-commerce a key driver of sustainable economic growth in Europe. This study aims to explore the relationship between a nation’s innovation level and its population’s inclination towards online shopping in various EU member states. It hypothesizes that higher innovation levels within a country lead to a greater tendency for online purchases. This study conducts a thorough analysis of the interplay between European economies’ innovation levels and the e-commerce market’s evolution. A composite innovation index was created using the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) methodology, and panel data models were utilized to examine the dependencies, with data from Eurostat and the Global Innovation Index. The focus is on the period from 2019 to 2021, which was marked by unique market dynamics and the impact of the COVID-19 pandemic. The findings confirm the significant role of innovation in driving e-commerce expansion within the context of sustainable consumption, supporting the main hypothesis. This research also highlights the pandemic’s positive effect on the e-commerce sector. The pandemic-induced changes in consumer behaviour, particularly due to social isolation and crises in certain economic sectors, have emphasized the importance of online shopping. Notably, the most active online shoppers are identified in the 25 to 54 age group, revealing a key demographic trend.

Public Debt and Economic Growth after Covid-19 in Europe: Challenges and Policy Implications

The Covid-19 pandemic has had a profound impact on European economies, leading to a significant increase in public debt levels. This paper examines the challenges and policy implications of managing public debt and fostering economic growth in Europe post-Covid-19. It provides a conceptual framework by defining and measuring public debt, exploring the relationship between public debt and economic growth, and highlighting the role of public debt in times of crisis. The paper analyzes the impact of Covid-19 on public debt in Europe, including the fiscal response, debt accumulation, and reasons for increased debt levels. It further discusses the challenges posed by high public debt, such as debt sustainability, crowding out private investment, financial stability risks, and constraints on future fiscal policy.
 
 The study then presents policy implications for balancing public debt and economic growth, including fiscal consolidation measures, long-term debt management strategies, prioritizing public investments, implementing structural reforms, considering monetary policy, and fostering international cooperation. Additionally, the paper provides case studies of selected European countries, evaluating their approaches, assessing policy effectiveness, and drawing key lessons and best practices. Finally, the paper concludes with a summary of key findings, policy recommendations for European governments, and suggestions for future research directions.

The impact of Russian Energy Resources on the Economic Growth of the EU: Using Computational Intelligence Algorithms

This study explores the impact of Russian oil and natural gas on the economic growth of the European Union. The Gradient boosting algorithm was relied on to determine this effect because of its high prediction metrics (MSE: 0.002, RMSE: 0.040, MAE: 0.034, R2: 99.9). The study depended on three scenarios. The first scenario is that Russia's exports of both products decline to half the year 2022, then to the quarter of 2023, and this second scenario, then the worst scenario, is to prevent Its exports of both products in 2024. But the result is a decline in the European Union's economic growth in 2022 to (-2.15%), then it turns to 2.85% in 2023, and then to 3.86% in 2024, i.e., in the worst scenario year. The evidence for this is that the economies of these countries reduced their growth rates in 2020 (the Covid-19 crisis) to -5.96%, which turned to positive growth in 2021, amounting to 5.38%. This indicates these economies' ability to adapt in the short term by providing alternatives to the crisis.

The Power of E-Government to Accelerate Economic Growth: Panel Data Analysis on the Role of E-Government in the European Union's Economic Growth

The Power of E-Government to Accelerate Economic Growth: Panel Data Analysis on the Role of E-Government in the European Union's Economic Growth

Towards a sustainable environment: Examining the spatial VARIATIONS of renewable energy, environmental pollution, and economic growth in Europe

This study reexamines the spillover effects of CO2, the marginal impacts of renewable energy, and economic growth in 29 countries in Europe using the spatial panel econometric analysis from 2000 to 2020. The study first employed the pooled OLS, random effects, and fixed effects from the non-spatial to ascertain the possibility of spillover effects. The Wald and likelihood ratio tests both showed that the spatial Durbin model (SDM) was the best model for the study. The results obtained revealed that increasing the usage of renewable energy in a focal country results in a reduction in CO2 emissions in the focal country and that of neighboring countries. The results also lend credence to the idea that CO2 emissions from one region can travel to neighboring countries and distant trading partners. The findings revealed that cooperation is the best strategy for effectively reducing environmental challenges and that regulatory authorities must take action to reduce CO2 emissions from both the target country and from other neighboring countries to achieve sustainable growth. All things considered, it makes sense for national economies to work together with their neighbors to protect the environment and establish a common regulatory framework for effective carbon emission mitigation.

Assessing the Sustainability Level of European Cultural and Creative Industries Based on Entropy Method

Abstract This paper aims to highlight the sustainable development level of European cultural and creative industries and their impact on national economic growth and establish a sustainable development assessment model based on the entropy weight method. The influence of different quantiles on the decision results is eliminated by standardizing the indicators. The objective evaluation method utilizes the entropy principle to avoid bias caused by human factors. The comprehensive evaluation method of sustainable development is utilized to gauge the trend and direction of enterprise development. It has been found that the annual added value of the cultural and creative service industry in Europe in 2022 is 226.976 billion yuan. It is an effective development strategy to promote economic growth in Europe, with an increase of 10.8% over the previous year.

Technological sovereignty? Delivering a complete European digital single market

The EU does not suffer from a lack of ambition on digital policy. From ‘strategic autonomy’ to ‘technological sovereignty’, European leaders like to portray the EU as a geopolitical heavyweight on digital. In practice, however, the European digital single market continues to be exposed to many of the fundamental challenges that have plagued it since its inception. The ongoing European effort to draft the global rulebook on tech regulation remains a laudable endeavour, but this has contributed little to boosting the competitiveness of the European digital sector. Many European tech companies still struggle to offer their services outside of national borders and expand their reach to a genuinely European customer base. The EU must tackle inconsistent regulations, close infrastructure gaps, promote investment, and facilitate secure, yet speedy data flows. These issues are integral to helping to turn the digital single market into a tech hub for global business. This article puts forward a number of policy proposals for upgrading the European digital agenda as one of the main conduits for ensuring European economic growth and improved global standing.

Beyond distance: The spatial relationships of European regional economic growth

We analyze the spatial relationships of economic output dynamics in European regions from 2000 to 2019 using dynamic spatial autoregressive growth models. In contrast to previous studies that rely on exogenous spatial weight matrices based solely on geographical proximity, we use a novel Bayesian approach to fully estimate the spatial weight matrix. Our results show that economic and sectoral characteristics (e.g. sectoral production structure, education, etc.) significantly influence the degree of regional interdependence. The approach thus allows to study the complex dynamics of regional economic development beyond mere distance.

Spanish economy on the trajectory of the modernisation process

The experience of Spain indicates that in the actual conditions of decomposition of global and European economic growth, the promotion of modernisation processes involves reforming and structural rebooting of the economy, highlighting and systemic support for high-tech sectors of the economy. These and other problems of modernization are solved on the basis of the existing scientific and technical potential and international competitive advantages of Spanish business leaders in certain sectors of the world economy. As an example, the article demonstrates that in the changing European environment Madrid has tried to seize the initiative in the critical energy field. In this regard, the Spanish authorities predictably focused on relations with neighboring countries: Portugal and France, the creation of an energy system's interconnectivity, which has become one of the main tasks of the reform. Among other key areas are reindustrialisation, innovatisation programme digitalisation of small and medium-sized enterprises, creating conditions for the growth of technological unicorn startups. With the assistance of scientific methods of systemic, comparative, historical, content and statistical analysis, case study, the article reveals the concept of Spanish modernisation and gives its periodisation, defines the goals, tools, risks and challenges of the current stage of modernisation.

Biomass use and its implications for bioeconomy development: A resource efficiency perspective for the European countries

Increasing population and economic growth in Europe and the world are leading to growing demand for food, livestock feed, and energy, and consequently to growing negative impacts on the environment and climate change. Tensions and price fluctuations in international material supply chains have recently become an even greater challenge. As for biomass, its availability is limited due to land, water, human, and financial resources as well as the environmental boundaries. Therefore, efficiency of biomass use is becoming increasingly important; it is crucial to develop and apply integrated assessment frameworks for tracking progress in resource use efficiency that would allow comparing the efficiency of biomass and non-biomass use. This paper embarks on the analysis of biomass and non-biomass resource use in selected European countries over 2010–2019. The index decomposition analysis model is set up to decompose the changes in biomass consumption with respect to intensive and extensive drivers. Resource use efficiency is then assessed via the non-parametric frontier, taking into account the other inputs (labour and capital). The results suggest that biomass efficiency is higher than that of non-biomass materials. The efficiency scores suggest that further decoupling of domestic material consumption and economic growth is needed.

Does representation of women in parliament promote economic growth? Considering evidence from Europe and Central Asia

IntroductionThe relationship between gender equality and economic growth has attracted considerable attention in scholarly research. While existing literature has evaluated the significance of gender inequality in education and employment, the impact of gender disparity in public service on economic growth remains an under examined area of scholarly inquiry. The main aim of this study is to assess the effect of female empowerment in public service on economic growth in Europe and Central Asia (ECA). To the best of our knowledge, this is the first analysis of the relationship between female political empowerment and economic growth at a regional level.MethodsWe rely on several econometric techniques to obtain robust empirical results and resolve various problems encountered when using panel data. We start with the random and fixed effects model to obtain the baseline results. The fixed effects model generates unbiased estimates by reducing the impact of time omitted variables. The core empirical technique used in this study is the twostep system GMM estimator.ResultsThe empirical results suggest that female participation in parliament has a positive and significant effect on economic progress. In particular, a 10%-point increase in women's representation in parliament leads to a 0.74%-point increase in GDP growth.DiscussionThus, it is essential to further promote female empowerment programmes in developing countries and continue to adopt new measures aimed at increasing the participation of women in public service. Future studies could explore the relationship between female empowerment and economic growth at subnational levels and test whether female empowerment moderates the relationship between financial development, innovation, trade and economic growth.

Issues of EU Member Nations’ Shared Sovereignty, Institutions, and Economic Development

To investigate the effects of the European Union’s (EU) member nations’ shared sovereignty on economic growth. The member nations have lost substantial political and economic independence (sovereignty) and democracy. Therefore, their governments cannot facilitate rapid economic growth in their countries, affecting the EU as a whole. Data from the World Bank, institutional research entities, and the EU were utilized. The dependent variable is economic growth, and the independent and moderating variables are mainly institutions and the European Sovereignty Index. Shared sovereignty and its specific categories and foreign direct investment (FDI) outflows negatively impact economic development in the EU. Shared sovereignty negatively moderates the relationship between political rights and economic development and between FDI outflows and economic development. Democracy in member nations is formal rather than real. The present study focused on the EU’s problems rather than its achievements and empirically investigated the direct and moderating effects of national sovereignty and member-country institutions on member-country economic growth. This focus and the nature of the investigation constitute the originality of the present study and reduce the gap in the literature about the effects of sovereignty, institutions, and capital spillovers (FDI outflows) on economic growth in Europe. The value of the study is in its findings, which should trigger holistic research efforts on the pros and cons of the EU for Europe, democracy, the economy, and the world.

Financial Integration and Economic Growth in Europe

Financial Integration and Economic Growth in Europe

The Power of E-Government to Accelerate Economic Growth: Panel Data Analysis on the Role of E-Government in the European Union's Economic Growth

The Power of E-Government to Accelerate Economic Growth: Panel Data Analysis on the Role of E-Government in the European Union's Economic Growth