Search

The aim of this paper is to empirically examine the effect of renewable energy use and economic growth on pollution within EUROZONE from 2005 to 2013 by utilizing Dynamic Panel Generalized Method of Moments approaches. The empirical results reveal that economic growth positively affects environmental pollutants. The use of renewable sources of energy negatively affects pollution. The more the renewable energy we use the less the air pollution. However, energy saving and energy intensity contribute to more air pollution. [ABSTRACT FROM AUTHOR]

This paper explores the role of micro, small and medium size enterprises in the growth of per capita gross domestic product at European Union level between 2005 and 2010. Using a panel of data from 25 Member States the results show a positive connection between the prevalence of SME in terms of created value added and GDP per capita growth. When investigating the aforementioned relationship at enterprise size class level the results differ considerably. While microenterprises prevalence in terms of created value added does not appear to cause more growth in per capita income at EU level, small and medium sized enterprises are some of the main drivers of the annual per capita GDP growth. [ABSTRACT FROM AUTHOR]

Economic growth is a key concept in developing countries and in designing growth models becoming more efficient. This paper begins by defining the concept of growth, identifying and presenting the factors that contribute to achieving it, and finally the European growth model is outlined for attaining this objective. Given the global financial crisis started in 2008, were analyzed performance of growth models used in Central and Eastern Europe, an attempt to identify causes and effects. Thus, we have outlined three growth models: robust, moderate and a model with economic contraction. [ABSTRACT FROM AUTHOR]

The article aims to analyse the evolution of budgetary expenditures and their relationship with economic growth, especially in the EU countries and three non-EU countries - Switzerland, Norway and Iceland during 1991 - 2012. To test the link between government spending and economic growth the research used the United Nation Classification of the Functions of Government and three econometrical regression methods – ordinary least square, least squares dummy variable and the generalized method of moments. Statistical results for the 10 categories of expenditure have shown that economic affairs, environmental protection, recreation, culture and religion and social protection have a significant impact on economic growth. Also the recent economic crisis and the EU accession influenced the variation of GDP/capita. [ABSTRACT FROM AUTHOR]

This paper analyzes the correlation between public expenditure for each individual sector and economic growth for 30 European countries over the period 1991 to 2012 using three econometric methods -- ordinary least squares, least square dummy variable and generalized method of moments. In order to test the link between government spending and economic growth, the research uses the United Nation's Classification of the Functions of Government. By analyzing the sub-branches of public spending, we arrived at the conclusion that most of the public expenditures negatively affected economic growth. Also, the use of dummy variables showed that the recent economic crisis has had a negative effect on the sample states. The European integration didn't have a big influence on economy, the GDP per capita growing with only 0.03%. The impact of public expenditure on economic growth is very important nowadays because the economic system was changed by the recent events, mainly the global economic crisis, the almost economic collapse of Greece and the European Union's ageing and debt problems. [ABSTRACT FROM AUTHOR]

In this paper, we empirically investigate the causal nexus between economic growth (GDP), CO2 emissions (environmental degradation), financial development, and trade openness using the ordinary least squares technique for a yearly panel data of 40 European economies, during the period of study from 1985 to 2014. To examine this causal link, we utilize the Cobb–Douglas production function. The empirical findings point to a bidirectional Granger causal linkage among GDP and pollution, GDP and financial sector development, GDP and trade openness, financial sector development and trade openness, and trade openness and pollution in the case of European economies. From the causal link between GDP and environmental pollutants, we validate the existence/confirm the validity of the environmental Kuznets curve hypothesis. Also, we confirm/bear out the feedback suggestion of the bidirectional causality among trade openness and financial sector development. Besides, we find the neutrality hypothesis linking carbon emissions and financial sector development inflows. We find the presence of the bidirectional nexus between GDP and financial sector development and among GDP and trade openness in the European economies. Finally, panel causality verifies that bidirectional causal connection is found between economic growth, environmental degradation (CO2), financial development, and trade openness. [ABSTRACT FROM AUTHOR]

We reassess the results from the literature on the relationship between the youth unemployment rate and GDP growth (Okun’s law), based on the concern that the unemployment rate is not an ideal indicator for teenagers and young adults. Using the unemployment ratio instead, we find that youth unemployment (15–24 years old) is not significantly more responsive to economic growth than prime-age (25–64) unemployment. However, compared to prime-age unemployment, teenagers’ unemployment (15–19) is relatively unresponsive, whereas young adult’s (20–24) unemployment is more strongly correlated with economic growth. These results are quite different than those obtained with the unemployment rate as the dependent variable. [ABSTRACT FROM AUTHOR]

The aims of this article are to propose an overall index of social exclusion and to analyze its relationship with economic growth in European countries. We approach social exclusion as a multidimensional phenomenon by a three-mode principal components analysis (Tucker3 model). This method is applied to estimate an indicator of social exclusion for 28 European countries between 1995 and 2010. The empirical evidence shows that in the short run: (1) Granger causality runs one way from social exclusion to economic growth and not the other way; (2) countries with a higher level of social exclusion have higher growth rates of real GDP per capita; and (3) social exclusion has a larger effect than income inequality on economic growth. The policy implication of our analysis is that social inclusion is not a source of economic growth in the short term. [ABSTRACT FROM AUTHOR]

This study revisits the long run and dynamic causal linkages between defense spending and economic growth in 15 selected European countries for the period 1988–2010 by utilizing recent developments in non-stationary panel data analysis. To this end, the series properties of per capita defense spending, per capita real capita stocks, and per capita real GDP are investigated by the panel unit root tests with and without breaks that support evidence on unit root. The panel cointegration tests with and without breaks are also subsequently employed to investigate whether there exists a long-run equilibrium relationship between these three variables. Finally, our causality analysis from panel vector error-correction model suggests that there is a feedback relation between real capital stock and real GDP in both short and long run, a one-way Granger causality running from real GDP to defense spending in both short and long run, and defense spending only Granger causes real capital stock in the long run. [ABSTRACT FROM AUTHOR]

This article presents estimates of aggregate and per capita GDP in constant prices for Europe over the period 1870–2000. Following the approach of Bairoch, we present figures for the continent as a whole and for individual countries on the basis of changing boundaries. This is complementary to the Maddison data-set, where country data are presented on the basis of constant boundaries. Data on the basis of the boundaries of the time are more convenient for comparative historical analysis, and can be combined more easily with data from contemporary sources, such as official statistical collections. Regional totals are also provided. [ABSTRACT FROM PUBLISHER]