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GDP growth and convergence determinants in the European Union: a crisp-set analysis Cover

GDP growth and convergence determinants in the European Union: a crisp-set analysis

Open Access
|Dec 2016

Abstract

Economic growth and convergence remains a topical issue. This study uses a crisp-set qualitative comparative analysis of data from European Union countries in order to establish which conditions could be considered necessary and sufficient to make these countries converge. Based on six different conditions (GDP, secondary education, life expectancy, fertility rate, government consumption and inflation rate), this study finds that the main conditions affecting convergence are government consumption ratio (lower levels will increase convergence), education levels and life expectancy (both with a positive influence on convergence). The first two conditions show quite interesting results: in fact, reduction of government expenditure and budget constraints are an open debate; and the European Union’s aim to become a more competitive economy can only be attained with higher levels of education.

DOI: https://doi.org/10.1515/revecp-2016-0017 | Journal eISSN: 1804-1663 | Journal ISSN: 1213-2446
Language: English
Page range: 279 - 296
Submitted on: May 6, 2016
Accepted on: Sep 23, 2016
Published on: Dec 17, 2016
Published by: Mendel University in Brno
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2016 Paulo Ferreira, Andreia Dionísio, published by Mendel University in Brno
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.