On the determinants of economic growth: Empirical evidence from the Eurozone countries

Panagiotis Pegkas, Christos Staikouras and Constantinos Tsamadias
Additional contact information
Christos Staikouras: School of Business Administration, Athens University of Economics and Business, Greece
Constantinos Tsamadias: Department of Home Economics and Ecology, Harokopio University of Athens, Greece

International Area Studies Review, 2020, vol. 23, issue 2, 210-229

Abstract: This study empirically investigates the causal relationship between economic growth and several factors (investment, human capital, trade openness and public debt) in the Eurozone countries, where imbalances persist several years after the financial crisis. The results reveal a long-run relationship between variables and public debt, as investment, human capital and trade openness positively affect growth. On the other hand, there is a negative long-run effect of public debt on growth. Furthermore, the results indicate that there is long-run unidirectional causality running from investment, trade openness and human capital to growth and bidirectional causality between public debt and growth. The overall results reveal that Eurozone countries should base their growth strategies on fiscal consolidation, increasing exports, correcting the use of public investment and improving the quality of human capital, especially in higher education.

Keywords: Economic growth; public debt; investment; human capital; trade openness; Eurozone (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)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/2233865920912588 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:intare:v:23:y:2020:i:2:p:210-229

DOI: 10.1177/2233865920912588

Access Statistics for this article

More articles in International Area Studies Review from Center for International Area Studies, Hankuk University of Foreign Studies
Bibliographic data for series maintained by SAGE Publications ().