European Economic Development Research Articles

ANALYSIS OF COINTEGRATION AND CAUSALITY BETWEEN INDICATORS OF ECONOMIC GROWTH AND ENERGY EFFICIENCY OF EUROPEAN COUNTRIES

In modern conditions, when European countries have set themselves an extremely ambitious goal of reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels, it is important to analyze the cause-and-effect relationships between key indicators of energy efficiency of national economies and economic growth, the nature of their influence on each other. The article analyzes cointegration and causal relationships between panel data that determine the economic development and energy efficiency of 38 European countries for the period from 1995 to 2021. Stationary time series were analyzed for causality using the Dumitrescu Hurlin test, which, compared to the classical Granger test, more accurately takes into account the structure of panel data, namely cross-sectional relationships. The annual GDP growth rate has driven the intensity of CO2 emissions. For pairs of time series with the first level of integration, in the case of cointegration between them, a Vector Error Correction Model (VECM) was used to determine the type of long-term behaviour of the variables with their short-term feedback. Long-term causality was found from GDP per capita to the level of primary energy intensity of European countries. Exports of goods and services have proven to be a long-term cause of domestic consumption of natural gas and solid fossil fuels. Bidirectional long-term causality was found only between primary energy consumption and exports. It should be noted that in all short-term and long-term cause-and-effect relationships obtained in the article, economic development indicators are the cause for energy efficiency indicators. This signals that the level of energy efficiency of the European economy is determined to a large extent by the economic development of Europe in previous periods. ARDL models can be used to analyze causal relationships between time series that have different levels of integration.

Innovation at the Crossroads: How Public-Private Partnerships Drive Technological Development in Europe

This article investigates the pivotal role of public-private partnerships (PPPs) in driving technological development across Europe, highlighting how the collaboration between public institutions and private enterprises serves as a catalyst for innovation and economic growth. By analyzing a range of successful case studies and conducting an extensive review of existing literature, this study identifies the key factors that contribute to the effectiveness of PPPs and their substantial impact on technological advancement. The research reveals that PPPs significantly enhance resource allocation, allowing for more efficient use of financial and human capital. They facilitate risk sharing, which encourages private sector participation in high-risk technological projects that might otherwise lack sufficient funding or support. Moreover, PPPs promote knowledge transfer between the public and private sectors, fostering a culture of innovation and enabling the rapid deployment of new technologies. Different models of PPPs are examined to understand their implementation in various contexts, shedding light on the diverse approaches taken by European countries. The study also addresses the challenges faced in establishing and maintaining PPPs, such as regulatory hurdles, financial constraints, and coordination issues. Strategies for overcoming these barriers are discussed, providing practical insights for enhancing the success of PPPs. The findings underscore the critical importance of a supportive policy environment in nurturing PPPs. Effective regulatory frameworks, financial incentives, and clear governance structures are essential for maximizing the potential of PPPs. The article concludes with strategic recommendations for policymakers, aimed at strengthening PPP frameworks, fostering a conducive environment for sustainable technological innovation, and ensuring that the benefits of technological advancements are equitably distributed across society. By offering a comprehensive understanding of how PPPs drive technological development, this article contributes to the broader discourse on innovation policy and economic development in Europe. It underscores the necessity for continued collaboration between the public and private sectors to address the complex challenges of technological progress and to harness its potential for societal benefit.

ВПЛИВ ОКРЕМИХ ФАКТОРІВ НА ЕНЕРГЕТИЧНІ РИНКИ КРАЇН ЄС

The influence of energy consumption is an outstanding criterion for economic development of any state. European countries are critically dependent on energy supplies because of a high deficit of energy carriers and an energy crisis. The energy dependence makes the energy market not so stable and rises its instability due to global challenges. This article states the subject of research as the description and trends energy factors’ dynamics and their relevance to the other factors of influence on the European economic development. The goal of the article is to analyze and measure significant factors influencing the markets of energy through the current economic development of European countries. We try to analyze the up-to-date situation with ordinary energy carriers consumption, to define the peculiarities of the influence of energy markets on macroeconomic indices. We also try to measure here the degree of influence of energy market indices on macroeconomic development. That might allow us to define the significant factors for analysis and to demonstrate the overall condition of energy markets in the economy. There are the following common scientific methods used: systematic, logical and descriptive; analysis and synthesis; statistical; economic-mathematical modelling, constructing the correlation-regression model. Basing on the analysis made, it was defined that the EU markets of energy have common feature of growing dependence, and that is why their dependence on external factors, which is associated with a significant fall in domestic production, as well as a weak differentiation of markets. The European production of the common energy resources shows a downward trend for all energy markets, that leads to the growing significance of imports. The impact of energy market factors on macroeconomic indices of European countries is defined. The correlation analysis made by us proves the strong influence of oil market on GDP growth rate in Europe. The outstanding energy dependence of European countries shows bigger correlation with external factors, however no direct correlation between energy dependence and economic development was found. The intensive dependence of Europe on energy resources import is a big problem, and the energy security factor is also of high importance for investors. Summarizing it, we declare that energy factors do not have a big impact on the development of EU GDP these days, but the proper use of energy resources is more important than their consumption. This underlines the importance of effective use of resources for the further development of the European Union economy.

Archaeological Evidence of Medieval Sugar Production in Sicily: A Reassessment

SINCE MEDIEVAL TIMES, the impact of sugar production and consumption on European social, cultural, and economic development has been huge. The introduction of sugar cultivation entailed knowledge transfer and new technological requirements, such as the manufacture of sugar pots used to crystallise sugar, which is often the only archaeological evidence of its production and consumption. Sicily was one of the major sugar producers in medieval and post-medieval times, and many studies based on written sources are devoted to this phenomenon. However, the archaeological evidence seems comparatively scarce. This paper reviews the contexts and materials already known in Sicily, as well as research conducted under the EU-funded Marie Skłodowska-Curie SPotEU project. A typological classification based on sugar-pot shape and size is proposed here. This study allows the reconsideration of the archaeological evidence on the island and discusses changes in the design of sugar pots over phases, contexts and sites.

ЄВРОПЕЙСЬКИЙ СОЮЗ: ІСТОРІЯ СТАНОВЛЕННЯ ТА ЙОГО ЗНАЧЕННЯ ДЛЯ УКРАЇНИ

ЄВРОПЕЙСЬКИЙ СОЮЗ: ІСТОРІЯ СТАНОВЛЕННЯ ТА ЙОГО ЗНАЧЕННЯ ДЛЯ УКРАЇНИ

Europe’s semiconductor industry at a crossroads: Industrial policy and regional clusters

The European Union has agreed to provide significant investment to the semiconductor industry in order to address issues of self-sufficiency and digital sovereignty. This comes on the back of the long-term decline in the competitiveness and size of the industry in Europe. These issues are of considerable significance to urban and regional economic development agendas as the industry is clustered around several European regions. This commentary seeks to examine the extent to which European policy intervention is likely to positively influence Europe’s semiconductor industry. It is argued that the European semiconductor industry is at a crossroads. While it has some competitive advantages and is home to several significant clusters, it faces incessant competition from producers in Asia and the United States. It is argued that European policy should not be space neutral and aim to encourage innovation and enterprise within the sector in conjunction with existing European regional economic development policy measures. Within this approach, supporting key existing clusters through triple helix models of development are likely to be the most effective modes of intervention.

Determinants of European Economic Development: From Pandemic to War and Sanctions

Goal – to analyze the influence of the main determinants in the development of the European economy at the beginning of the 3rd decade of the 21st century. Research methodology – the article includes both an analysis of the ideas and views on economic processes of the world’s leading theorists and practitioners of economic science, and confirmation of the conclusions made on the basis of data from international organizations and institutions (Eurostat, ECB, IMF, FRS, etc.). Score/results – the coronavirus lockdowns are highlighted as the first determinant. The second determinant was specially created by the authorities of the EU countries and provided a unique financial stimulus for the economy in order to prevent a chain reaction of demand contraction. The third determinant was expressed in the acceleration of inflation. Its consequence was, to a large extent, the turmoil in the banking sector. Russia-Ukraine war and the sanctions that followed have added to the uncertainty. These four determinants have accelerated the change in business cycle phases and changed some of their typical characteristics. As a result, the authorities are forced to find a balance between curbing inflation and preventing recessions with the help of very fine regulation. Originality/value – the article represents one of the attempts to look at the ongoing processes through the prism of economic theory in order to form the basis for further actions.

Making Europe

Abstract This article reviews how historians and economists have thought about the economic history of Europe. It notes that internal explanations that paid little attention to the non-European world have been dominant for more than a century, and reviews some of the reasons for that Eurocentrism. Such navel-gazing, however, has also been increasingly challenged for some time now, at first especially by non-European scholars and activists. The latter parts of the article explore current debates within the discipline and its increasing acknowledgment of the interactions between European and non-European economies. Two areas of discussion that have played a crucial role in this evolution are detailed in particular: the question of the role of slavery in European economic development and the rich debates taking place in the relatively new field of global labor history. Overall, efforts to write the economic history of Europe confined to its own ill-defined boundaries might serve particular political needs, but they are, in fact, historically inaccurate.

Green Jobs-A Literature Review.

In the past two decades the topic of “green jobs” has drawn particular attention, resulting in a widely diverse and relatively large number of published papers. Although a determinant for the increase of knowledge, the heterogeneity of these studies may raise the issue of a systematic documentation of the key contributions in this field. In this context, the present research focuses on analyzing the scientific literature published in the last five years on the topic of “green jobs” with the aim to identify definitions and meanings associated with the concept of “green jobs”, the connected terms, areas of research interest and the main theoretical and practical results. The results reveal that although there is no uniformity in the definition of the concept, there is still a convergence towards the initial meaning offered by the UNEP/ILO/IOE/ITUC Report of 2008. Moreover, using scientific software VOSViewer our research shows that the concept of “green jobs” is most linked with the following terms: sustainable development, the green economy, the circular economy, the welfare economy, the European Green Pact, energy, renewable energy, economic development, and employment. Furthermore, our analysis reveals that the studies focused on “green jobs” are mainly concerned with the following issues: green jobs creation, work-life balance, correlations between green business and green jobs and the role of local government in supporting green jobs.

Think Globally, Act Locally: Global Requirements and Local Transformation in Sugar Pots Manufacture in Sicily in the Medieval and Post-Medieval Periods

Since medieval times, sugar production and consumption has had a huge impact on European social, cultural, and economic development. The introduction of sugar cultivation entailed knowledge transfer and new technological requirements, such as the manufacture of sugar pots used to crystallise sugar, which requires a specific design, and thermal and mechanical properties. This paper presents part of the results of the SPotEU project, funded under the Marie Skłodowska-Curie Actions, which explores the development and impact of sugar production in western Europe through the study of sugar pot manufacture from an interdisciplinary perspective, integrating archaeological and historical research with material science and material culture approaches. This paper focuses on sugar pots from Sicily, one of the main regions for sugar production in Western Europe in the 11–16th centuries A.D. Sugar pots were assessed from technological and performance points of view, aided by instrumental analysis (petrography, SEM, XRF, XRD, mechanical, and thermal property tests). The archaeological and analytical results are presented, revealing different centres of sugar pot production on the island, and specific choices in the design of the vessels and their properties. This allows us to discuss how craftspeople locally adapted their ceramic-making traditions to face the new product demands from the sugar production industry in the Mediterranean.

The effects of gender equality on economic development in Europe

Gender equality is increasingly perceived as a central issue and discussed as an essential factor for competition, economic growth and solidarity in society. The starting point of this study is the identification of the main factors influenced by gender equality in the context of the economic performance of countries. Europe was chosen as the study area, with regional differences between Northern, Western/Central, Southern and Eastern Europe also being taken into account. The empirical analysis is based on panel regression models. These confirm that policies designed to increase the share of women in leadership positions and to achieve an equal representation of self-employed women and men have a significant positive impact on a country's economic performance across Europe. In addition, differentiated recommendations for action are derived from the results for the individual subregions.

Higher education systems and regional economic development in Europe: A combined approach using econometric and machine learning methods

This study deals with the analysis of regional economic development in Europe. Specifically, it examines the extent to which the performance and characteristics of higher education systems (HESs) influence regional economic development. The analysis employs data at the regional level, examining 649 NUTS-3 in 29 European countries, from 2014 to 2016. The empirical analysis, based on an original dataset that we developed, employs a novel methodological strategy that combines a traditional econometric approach with random forest. The findings detect the existence of nonlinear relationships between regional GDP per capita and HES indicators, which could have been overlooked by previous studies in the literature. Furthermore, the empirical results demonstrate the importance of comprehensively modelling the diversity of HESs, since distinct characteristics and performance can contribute differently to the economy of the regions. In particular, the most important factors for regional economic development are the size of HESs, the internationalisation of the students and research productivity. Finally, this paper provides useful insights for policymakers by suggesting new instruments for driving and fostering the economic development of their regions.

ЦИВІЛІЗАЦІЙНИЙ ВИМІР ЗБЛИЖЕННЯ УКРАЇНИ ТА ЄС В УМОВАХ ЕКСКАЛАЦІІ ВІЙСЬКОВОГО КОНФЛІКТУ

The article discusses the rapprochement between Ukraine and the European Union in the context of escalating military conflict. Russia's invasion of Ukraine, which is completely unprovoked and unjustified, has caused terrible human suffering and mass destruction of cities and other communities. It is determined that the Russian invasion will have great consequences for the society and economic development of Europe and the world, especially after two years of the coronavirus pandemic. An analysis of the forecast of the International Monetary Fund on the topic of changes in world GDP in 2022–2023, which shows that economic growth in the European continent in 2022 will slow down sharply due to hostilities in Ukraine. The need of the Ukrainian government for significant financial support to ensure the support of its functions is substantiated. It was revealed that the EU provides comprehensive and short-term assistance to the Ukrainian people, takes measures to impose sanctions on the Russian economy, which have been classified in detail by areas of influence and consequences. It has been established that one of the main problems that will remain after the military conflict in Ukraine is the reconstruction of the affected country. At a time of war in Ukraine, talks on future reconstruction may seem premature, as the country cannot take measures to rebuild the destroyed infrastructure on a large scale, given the constant threat of missile and artillery strikes. However, EU governments, along with Ukraine itself, are already focusing on reconstruction planning. It is proposed to develop a draft recovery platform for Ukraine, in which the EU and its partners will play a key role by adding investment from various areas to a specially created recovery fund which will receive payments from the EU and European Bank for Reconstruction and Development budgets, member states' contributions, various credit and grant programs, public and private investments of interested investors, financial assistance from the G7 countries and other partners, especially from international financial institutions such as the International Monetary Fund or the World Bank. Investments by partners will help Ukraine build a new, much more stable and developed economy that will support the Ukrainian people on the difficult and long path of European integration.

IMPACT OF RENEWABLE ENERGY SOURCES CONSUMPTION ON ECONOMIC GROWTH IN EUROPE AND ASIA-PACIFIC REGION

Renewable energy sources have a significant impact on transforming the world fuel and energy balance structure, exacerbating inter-fuel competition. The development of green energy and a low-carbon economy is a priority task of modern energy and foreign economic policy in many countries. However, the consumption of renewable energy is uneven. This is due to the high cost of technologies and equipment and certain «distrust» in alternative fuels and their capabilities. In a framework of this study, the authors evaluated the impact of renewable energy sources on the economic development of Europe and the Asia-Pacific region, which are the primary consumers of these types of energy. The article investigates the dependence of GDP growth on the growth in consumption of fossil and renewable energy sources both in aggregate form and individual types of energy. The detailed calculations made it possible to identify the degree of influence of renewable energy on the economy in several macro-regions and determine the most significant types of energy resources. This statistically confirmed the positive impact of wind energy in Europe and solar energy in the Asia-Pacific region. The obtained regression estimates confirm the positive influence and stimulating effect of renewable energy on Europe and the Asia-Pacific region. The results obtained by the authors are based on data for the period from 1990 to 2017.Keywords: renewable energy sources, fossil fuel, hydrocarbons, economic growth, Europe, Asia-Pacific region, panel data analysis.JEL Classifications: C23, C33, Q2, Q21, Q43.DOI: https://doi.org/10.32479/ijeep.11787

The Wind from the East: China and European Economic Development

ABSTRACTIn recent years Europe has become a primary focus for Chinese investment. In the context of the rolling out of Chinese government plans such as its Belt and Road Initiative and ‘Made in China 2025’ industrial strategy, and the fact that many Chinese companies are either controlled or influenced by the Communist Party, major consequences for Europe's economic development — and its social, political and geopolitical corollaries — are now in train. The analyses presented in this special issue significantly advance our understanding of the dynamics and consequences of China's deepening economic engagements in Europe. They do so particularly in relation to the contentious issues surrounding corporate acquisitions by Chinese companies, the security problems associated with some investments and the impact of China's investment finance. This introductory article offers an institutional framework for comprehending the other articles that constitute the special issue and provides summaries of their contents. Additionally, it provides an assessment of how the special issue's contribution advances our understanding of China's externalization and its implications for European economic development.

The Sustainability of Industrial Heritage Tourism Far from the Axes of Economic Development in Europe: Two Case Studies

The transformation of mining and industrial spaces into tourist spaces is part of the debate surrounding the profound changes in the contemporary economies of developed European countries. The loss of competitive power of their traditional companies, the obsolescence of many manufacturing facilities, and the take-off of other industrial economies in remote parts of the world have led to the closure of thousands of mines and factories, with the approval of environmental groups. In some privileged places, these ex-industrialized spaces have recovered environmentally, been allocated aid for socio-economic reconversion, and reoriented the old mines and factories (now converted into industrial heritage), towards cultural and tourist uses. The successful examples of Ironbridge, Zollverein or Wieliczka, have created the illusion to managers, owners, and local population of being able to turn almost any ruin of the industrial and mining past into a tourist attraction. Starting in the 1990s, many ex-industrial spaces, which were far from the main urban centres, opted for this tourist transformation as a lifeline to slow down the loss of population and economic activities. Sometime after these projects of industrial tourism, the result can be evaluated with objective data that question the sustainability of the model and the resilience of these places. This paper focuses on questioning the sustainability and resilience of the tourist transformation of two former mining areas located in Spain (Almadén and Sabero), far from the axes of economic development.

The Influence of the Evolution of Economic Activity in the Late Middle Ages and the Renaissance on the Emergence of the Dualistic Concept in Accounting

Purpose: The purpose of this study is to demonstrate that the basic assumptions of double accounting were created by the same premises that contributed to the revival of humanistic trends in Europe in the 13th–14th centuries, especially in the socio-economic sphere. Approach: This is a historical overview of the section of the literature devoted to the rise and evolution of double entry accounting. The study is the result of research and literature studies, based on Polish and foreign sources. Conclusions: It can be stated with full conviction that accounting as we know it today is a product of the end of the Middle Ages, and especially of the early period of the Italian Renaissance in Italy. The preserved documents show that the accounting based on double entry, in the period of the thirteenth and fifteenth centuries, was shaped in several stages. First, it covered receivables and liabilities, initially by banks, then by other companies, and then, other assets were entered twice: goods, cash and liabilities. The use of equity in accounting led to the inclusion of result events in the accounting records. At this point, the entity’s accounting became a closed system as we know it today. Limitations: Taking into account a large number of – especially foreign-language – source materials on the origin of accounting, only a small part of these sources were analyzed and cited during the preparation of the article. It seems that the topic is worth further research and literature studies. Practical implications: The study is primarily epistemological in nature, not focused on economic practice. Originality: It is one of the few studies in accounting in Poland devoted to the origins of accounting based on double entry and its evolution as a result of economic development in Europe in the late Middle Ages and early Renaissance.

Figuring Out

Abstract The paper focusses on the spread of Hindu-Arabic arithmetic among European practitioners. The analysis is based on an original database recording detailed information on over 1200 practical arithmetic manuals, both manuscript and printed. This database provides the most detailed reconstruction available of the European tradition of practical arithmetic from the late 13th to the end of the 16th century. The paper argues that studying this spread makes it possible to open a perspective on a progressive transmission of ‘useful knowledge’ from the ‘commercial revolution’ to the ‘little divergence’. Focussing on the transmission of practical arithmetic allows to stress the role of skills and human capital in pre-modern European economic development. Moreover, it allows to reconstruct a progressive transmission, from the Mediterranean to the Atlantic, of a ‘practical knowledge’ which eventually contributed to major developments in European ‘theoretical knowledge’.

Historical state stability and economic development in Europe

AbstractIn this paper, we show that state stability exhibits a persistent and robust non-monotonic relationship with economic development. Based on observations in Europe spanning from 1 to 2000 AD, regions that have historically experienced either short- or long-duration state rule on average lag behind in their local wealth today, while those that have experienced medium-duration state rule fare better. These findings support the argument that both an absence as well as an excess of state stability are bad for economic development. State instability hinders investment for growth, while too much stability is likely indicative of elite capture and subsequent stagnation of innovation.

Relocation, standardization and vertical specialization: Core–periphery relations in the European automotive value chain

The global automotive industry has been exposed to an overproduction crisis for several decades. Under the pressure of restructuring, automotive companies renew both the geographical scope and the technological standardization of their production processes. We analyze the effects this restructuring had on the development of European economies in order to understand whether vertical specializations in the automotive value chain can lead to Central and Eastern European countries’ catching up to advanced economies, or whether such specializations reproduce new forms of core-periphery relations. In order to answer this question, we introduce a new methodological approach to understand vertical specialization in the global value chain from a semi-peripheral perspective. We combine the theory of global value chains with Vernon's product life-cycle theory. In the research we focus on the standardization of the production of electric engines behind the geographical relocation of production between core and periphery.