Measuring the Efficiency of Economic Growth towards Sustainable Growth with Grey System Theory

Małgorzata Kokocińska, Marcin Nowak and Paweł Łopatka
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Małgorzata Kokocińska: Institute of Economics and Finance, Faculty of Economics and Management, University of Zielona Góra ul. Licealna 9, 65-417 Zielona Góra, Poland
Marcin Nowak: Faculty of Engineering Management, Poznan University of Technology, pl. Marii Skłodowskiej-Curie 5, 60-965 Poznań, Poland
Paweł Łopatka: Institute of Economics, Department of Microeconomics, Poznań University of Economics and Business, al. Niepodległości 10, 61-875 Poznań, Poland

Sustainability, 2020, vol. 12, issue 23, 1-17

Abstract: In the paper, a new indicator exemplifying the conversion efficiency of expenditures towards economic growth into results pertaining to sustainable development, dubbed the “Synthetic Efficiency Indicator for Economic Growth” (hereinafter: “SEI-EG”) has been proposed. The inspiration for proposing such an indicator was the identification of the lack of connections between research on economic convergence and the research area connected with sustainable growth category. It was assumed that, in the first place, outcomes of the proposed convergence will be visible in developed economies, represented by EU15 member states. The set goal was to provide an answer to the question of difference between EU15 member states with respect to efficiency of converging expenditures exemplifying economic growth into results pertaining to sustainable growth. The research was conducted for 2016–2018 using Grey System Theory. With the use of the elaborated indicator, the authors created a ranking list of countries based on the efficiency of economic growth towards sustainable growth criterion. The conducted research proved that, in general, the smaller EU member states are characterized by significantly higher efficiency of converging expenditures exemplifying economic growth into results pertaining to sustainable development in the researched area. Among the countries with large economies, only Germany showed efficiency comparable to smaller ones.

Keywords: economic convergence; sustainable development; Grey Whitenization Model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
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:gam:jsusta:v:12:y:2020:i:23:p:10121-:d:456053

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