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What Drives Economic Growth across European Countries? A Multimodal Approach

Author

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  • Larissa M. Batrancea

    (Department of Business, Babeş-Bolyai University, 7 Horea Street, 400174 Cluj-Napoca, Romania)

  • Mehmet Ali Balcı

    (Department of Mathematics, Muğla Sıtkı Koçman University, 48000 Muğla, Turkey)

  • Ömer Akgüller

    (Department of Mathematics, Muğla Sıtkı Koçman University, 48000 Muğla, Turkey)

  • Lucian Gaban

    (Faculty of Economics, “1 Decembrie 1918” University of Alba Iulia, 15−17 Unirii Street, 510009 Alba Iulia, Romania)

Abstract

This research study examines the factors that determined economic growth measured by gross domestic product, gross value added, final consumption expenditure of households, and gross fixed capital formation across a sample of 36 European countries during the time frame Q3 2018−Q3 2021. We conducted a panel data analysis with the first-difference generalized method of moments (GMM) approach and cross-section fixed effects. Empirical results estimated with four econometric models indicated a significant robust impact of the independent variables exports, imports, foreign direct investment inflow, foreign direct investment outflow, social contributions, and wages on economic growth proxies. In addition, multiplex network analysis was used to investigate the connection architectures of the 36 countries, and it yielded statistical measurements for all layers in the multi-layered structure. Relevant policy implications of reported empirical results are also addressed.

Suggested Citation

  • Larissa M. Batrancea & Mehmet Ali Balcı & Ömer Akgüller & Lucian Gaban, 2022. "What Drives Economic Growth across European Countries? A Multimodal Approach," Mathematics, MDPI, vol. 10(19), pages 1-20, October.
    • Handle: RePEc:gam:jmathe:v:10:y:2022:i:19:p:3660-:d:934654
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