On the linkage between Gross Value Added by Economic Activities and the Overall Gross Value Added in EU-27

Andreescu Francesca Dana ()
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Andreescu Francesca Dana: Bucharest University of Economic Studies, Bucharest, Romania

Proceedings of the International Conference on Business Excellence, 2021, vol. 15, issue 1, 1197-1207

Abstract: The financial and economic crisis led to a significant recession in the EU-27 in 2009, followed by a rebound in 2010. The existing economic situation requires a rethinking of the economic development policies, focused on analyzing the indicator of gross value added, created in production. This may lead to a new growth model, based on economic activities with higher value added. This paper investigates the linkage between overall gross value added in EU-27 and gross value added by economic activities, as described by NACE Rev. 2, from first quarter 2010 to second quarter 2020. The article attempts to include a wide range of statistical analysis and models for a complete assessment of the subject. Therefore, in order to achieve the objective, we choose to investigate the presence of causality relationships using VAR/SVAR models and Granger causality test, which reflect the presence of long and short-term relationships between certain selected variables. Through the assessment, we discovered a strong bi-directional causality between overall gross value added and the gross value added by industry and by distributive trades, transport, accommodation and food services, based on which we estimated a linear regression. The findings should present interest for policymakers, in order to assess perspectives to economic growth.

Keywords: EU-27 economic growth; gross value added; VAR/SVAR models; Granger causality; Regression (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:poicbe:v:15:y:2021:i:1:p:1197-1207:n:4

DOI: 10.2478/picbe-2021-0111

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