The Impact of Structural Reforms on Sustainable Development Performance: Evidence from European Union Countries

Jonas Rapsikevičius (), Jurgita Bruneckienė, Rytis Krušinskas and Mantas Lukauskas
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Jonas Rapsikevičius: School of Economics and Business, Kaunas University of Technology, 44239 Kaunas, Lithuania
Jurgita Bruneckienė: School of Economics and Business, Kaunas University of Technology, 44239 Kaunas, Lithuania
Rytis Krušinskas: School of Economics and Business, Kaunas University of Technology, 44239 Kaunas, Lithuania
Mantas Lukauskas: Faculty of Mathematics and Natural Sciences, Kaunas University of Technology, 44239 Kaunas, Lithuania

Sustainability, 2022, vol. 14, issue 19, 1-18

Abstract: The European Union (EU) is a unique economic integration organization with standard policies that seek common goals among members, such as convergence and sustainable development. It aims to become a climate neutral economy by 2050. With structural reform implementation, each EU member country can work towards these set goals in accordance with their own welfare. However, a trade-off between the individual welfare goals of a country and the common goals of the EU should be reached. This article analyzes the impact of structural reforms on sustainable development performance in European countries. The article contributes to a gap in the literature because, to date, previous research has examined the effects of structural reforms on economic or environmental measures in groups of nations but has often lacked an adequate sustainable development context. In addition, the clustering of European Union countries according to different social policy regimes requires clarification of the perceptions and knowledge about the influence and usefulness of structural reforms for sustainable development performance. The research uses the panel data of the Heritage Index of Economic Freedom and Sustainable Development Goals agenda from the Eurostat database. The data cover 27 countries of the European Union for a period of 11 years (2010–2020). The research panel includes 297 observations. We found different results regarding the influence of structural reforms on sustainable development performance under different social policy regimes and the regulatory trap for homogeneous sustainable development in the European Union. The paper provides original empirical evidence and specifies the targets of structural reforms in relation to sustainable development. The results provide guidance for policymakers to develop more appropriate and efficient sustainable development policies.

Keywords: economic freedom; structural reforms; welfare state; sustainable development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:19:p:12583-:d:932579

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