A technology-based countries-interaction dynamic model for the study of European growth and stability: Were there the conditions for convergence?

Bernardo Maggi

Technological Forecasting and Social Change, 2017, vol. 125, issue C, 275-288

Abstract: In this research, we study a methodology for evaluating the dynamics of the European countries' growth. Our focus is on the analysis of the convergence conditions implied by the Lisbon strategy and founded on the interaction among technology diffusion, services for firms and production (the so-called “knowledge-based sustainable growth”). We estimate and analyse a differential equations system representing a disequilibrium model where business services assist the production process for the use of technology. To this aim, we develop a specific panel data estimation-procedure for continuous time nonlinear models. We find the offshoring activity, operated by foreign business services, essential for the countries' convergence to a stable growth path. Then, we perform a sensitivity analysis to assess the possible country's specific efforts necessary to gain stability. Further, we provide an evaluation of the convolution integral of our differential system to determine the initial conditions required to pursue a future target value for the endogenous variables.

Keywords: Technology diffusion; Countries' convergence and stability; Future targets; Continuous time estimation; Nonlinear dynamic systems (search for similar items in EconPapers)
JEL-codes: C32 C33 C53 C62 O33 O47 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:125:y:2017:i:c:p:275-288

DOI: 10.1016/j.techfore.2017.07.002

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