European Union Economy System Dynamic Model Development

Valerijs Skribans

MPRA Paper from University Library of Munich, Germany

Abstract: The formation of the European Union (EU) is the one of the biggest political – economic events of the last 50 years. The aim of this study is to develop EU economy functioning system dynamic model. Main research method is system dynamics. General scheme of EU economy system dynamic model is shown. Implementing the model in practice, new EU member economic integration model in EU is developed. Model is tested only for one EU country, Latvia. Results of the paper show failure of the mechanism of EU operations. The available mechanism contradicts EU principles; it doesn't promote the cohesion in European Union, but quite opposite - leads to solving problems of well-developed EU countries at the expense of developing countries. In the given conditions the example of Latvia shows that there is no possibility to overcome the system crisis. These circumstances specify necessity of changes in EU internal migratory policy, changes in principles of developing countries’ support in EU, and changes in distribution of EU means, taking into account internal migration.

Keywords: European Union; integration; GDP; employment; debt; international trade; investments (search for similar items in EconPapers)
JEL-codes: C0 C00 C02 C15 C30 C38 C39 C40 C49 C50 C51 C53 C60 C68 C69 D00 D01 D10 D13 D20 D24 D31 D50 D58 E2 E20 E21 E22 E23 E24 E27 E30 E31 E32 E37 F21 F22 F60 F62 F63 F66 J00 J11 J20 J30 J31 J61 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Proceedings of the 30th International Conference of the System Dynamics Society (2012): pp. 3687-3697

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