Structural Change and Economic Growth in Schengen Region

Tahir Mahmood, Tahir Mahmood and Mikael Linden
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Tahir Mahmood: University of Eastern Finland, Joensuu, Finland
Tahir Mahmood: School of Economics, QAU, Islamabad, Pakistan,
Mikael Linden: Department of Law, University of Eastern Finland, Joensuu campus, Finland

International Journal of Economics and Financial Issues, 2017, vol. 7, issue 1, 303-311

Abstract: The structural change of economy entails that in the long run how the dynamics of three main sectors (i.e., agriculture, industry and services) are related to economic growth. We conduct Granger non-causality tests with data from 15 Schengen countries in period 1970-2012. The results confirmed that industry sector is still the engine of economy and the larger service sector retards the gross domestic product per capita (GDPc) growth rate in Schengen region. The results support Baumol's argument concerning the productivity differences and their growth effects across the sectors.

Keywords: Sector Shares; Economic Growth; Panel Data; Co-integration; Error Correction (search for similar items in EconPapers)
JEL-codes: E1 E2 J O1 O4 (search for similar items in EconPapers)
Date: 2017
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:eco:journ1:2017-01-40

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