Economic growth determinants in new and old EU countries with focus on construction
Classical, neoclassical, institutional and other schools have debated what is crucial for economic growth. Literature review related to economic growth models is extensive. The objective of our paper is to construct a model of economic growth determinants in EU countries, with focus on construction...
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| Format: | Article |
| Language: | English |
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Vilnius Gediminas Technical University
2022-10-01
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| Series: | Technological and Economic Development of Economy |
| Subjects: | |
| Online Access: | https://journals.vilniustech.lt/index.php/TEDE/article/view/17598 |
| _version_ | 1798029289663234048 |
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| author | Miloš Žarković Jasmina Ćetković Srdjan Redzepagic Gordana Đurović Radoje Vujadinović Angelina Živković |
| author_facet | Miloš Žarković Jasmina Ćetković Srdjan Redzepagic Gordana Đurović Radoje Vujadinović Angelina Živković |
| author_sort | Miloš Žarković |
| collection | DOAJ |
| description |
Classical, neoclassical, institutional and other schools have debated what is crucial for economic growth. Literature review related to economic growth models is extensive. The objective of our paper is to construct a model of economic growth determinants in EU countries, with focus on construction. Our model includes determinants that reflect the impact of construction on economic growth, which is the contribution to existing literature. It has been created for three groups of countries: EU28, old EU and new EU countries. We believe that this has improved the quality of the results and enabled a comparative analysis of the old and new EU countries. In order to create a model, we used a strongly balanced panel of 28 EU countries in the period 1995–2019 and employed the difference-in-differences approach. Our results for EU28 confirm positive effect of industry, gross fixed capital formation, production in construction and cost construction index on GDP, while gross wages are statistically insignificant. FDIs have low negative impact on economic growth in EU28 and old EU, but statistically insignificant in new EU countries. CO2 is significant and positively correlated with economic growth in all countries. Based on empirical results, we propose policy relevance in concluding remarks.
First published online 21 October 2022
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| first_indexed | 2024-04-11T19:22:53Z |
| format | Article |
| id | doaj.art-2239dc0409a34c0cb88d97f19af5a38e |
| institution | Directory Open Access Journal |
| issn | 2029-4913 2029-4921 |
| language | English |
| last_indexed | 2024-04-11T19:22:53Z |
| publishDate | 2022-10-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Technological and Economic Development of Economy |
| spelling | doaj.art-2239dc0409a34c0cb88d97f19af5a38e2022-12-22T04:07:15ZengVilnius Gediminas Technical UniversityTechnological and Economic Development of Economy2029-49132029-49212022-10-0110.3846/tede.2022.17598Economic growth determinants in new and old EU countries with focus on constructionMiloš Žarković0Jasmina Ćetković1Srdjan Redzepagic2Gordana Đurović3Radoje Vujadinović4Angelina Živković5Faculty of Economics, University of Montenegro, Podgorica, MontenegroFaculty of Economics, University of Montenegro, Podgorica, MontenegroGraduate School in Economics and Management, Groupe de Recherche en Droit Économie et Gestion, Université Côte d’Azur, Nice, FranceFaculty of Economics, University of Montenegro, Podgorica, MontenegroFaculty of Mechanical Engineering, University of Montenegro, Podgorica, MontenegroIndependent Consultant, Podgorica, Montenegro Classical, neoclassical, institutional and other schools have debated what is crucial for economic growth. Literature review related to economic growth models is extensive. The objective of our paper is to construct a model of economic growth determinants in EU countries, with focus on construction. Our model includes determinants that reflect the impact of construction on economic growth, which is the contribution to existing literature. It has been created for three groups of countries: EU28, old EU and new EU countries. We believe that this has improved the quality of the results and enabled a comparative analysis of the old and new EU countries. In order to create a model, we used a strongly balanced panel of 28 EU countries in the period 1995–2019 and employed the difference-in-differences approach. Our results for EU28 confirm positive effect of industry, gross fixed capital formation, production in construction and cost construction index on GDP, while gross wages are statistically insignificant. FDIs have low negative impact on economic growth in EU28 and old EU, but statistically insignificant in new EU countries. CO2 is significant and positively correlated with economic growth in all countries. Based on empirical results, we propose policy relevance in concluding remarks. First published online 21 October 2022 https://journals.vilniustech.lt/index.php/TEDE/article/view/17598economic growthconstructiongross domestic productdifferences-in-difference approachnew EU countriesold EU countries |
| spellingShingle | Miloš Žarković Jasmina Ćetković Srdjan Redzepagic Gordana Đurović Radoje Vujadinović Angelina Živković Economic growth determinants in new and old EU countries with focus on construction Technological and Economic Development of Economy economic growth construction gross domestic product differences-in-difference approach new EU countries old EU countries |
| title | Economic growth determinants in new and old EU countries with focus on construction |
| title_full | Economic growth determinants in new and old EU countries with focus on construction |
| title_fullStr | Economic growth determinants in new and old EU countries with focus on construction |
| title_full_unstemmed | Economic growth determinants in new and old EU countries with focus on construction |
| title_short | Economic growth determinants in new and old EU countries with focus on construction |
| title_sort | economic growth determinants in new and old eu countries with focus on construction |
| topic | economic growth construction gross domestic product differences-in-difference approach new EU countries old EU countries |
| url | https://journals.vilniustech.lt/index.php/TEDE/article/view/17598 |
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