Determinants of GDP growth in Scandinavian countries with special reference to scientific progress

Objective: The study is aimed at verifying the main determinants of GDP growth in Scandinavian countries with special regard to scientific progress. Research Design & Methods: The theoretical part presents economic growth models (Romer learning-by-doing model and McMahon endogenous growth model). In the empirical study, they were verified on the example of Scandinavian countries. For this purpose, multiple regression analysis was used. Models have been developed to explain GDP per capita (as a measure of development) using variables determining work, human and physical capital. The variables included especially determinants of education, scientific development and new technologies. Findings:The study showed that the economic growth of Scandinavian countries is strongly associated not only with the development of factors mentioned in classical growth models (referring to scientific progress) but also the others, e.g. witch increase of medium and high-tech exports as % of manufactured exports in Sweden and Denmark. Moreover, it was indicated that scientific progress plays a particularly important role in the economic growth in these countries. Contribution & Value Added: The study provides current confirmation of theoretical models of economic growth for highly developed countries, where education and human capital are very important in the context of their development. Also, key determinants constituting the economic development of these countries were indicated. Similar verification may be used in the future for medium-developed and developing countries.