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Chapter 3: Economic Growth in the European Union

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Author Info
Lars Calmfors
Giancarlo Corsetti
Seppo Honkapohja
John Kay
Gilles Saint-Paul
Hans-Werner Sinn ()
Jan-Egbert Sturm
Xavier Vives

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Abstract

Growth performance among the EU-15 countries has been mixed. While it has been sluggish in France, Germany and Italy, several other EU countries have done well. Some successful countries, such as Finland, Ireland, Sweden and the UK, have relied strongly on the introduction of new technologies, in particular information technology. Greece and Spain have also been successful but have relied on traditional capital accumulation and increased labour input. The Lisbon Strategy, which focuses on the role of knowledge-based industries, should adopt a more flexible approach. Countries on the technology frontier should continue to rely on knowledge-based sources for growth. Other countries would be better advised to rely mainly on accumulation of traditional capital and increases in labour input, while they approach the high-tech frontier via technology transfer. The key areas for growth policy include improvements in education and IT adoption, together with measures that enhance competition among firms. Fostering innovation and improving entrepreneurial activities in the EU is vital for economic growth.

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Publisher Info
Article provided by CESifo Group Munich in its journal EEAG Report on the European Economy.

Volume (Year): (2006)
Issue (Month): (03)
Pages: 68-88
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Handle: RePEc:ces:eeagre:v::y:2006:i::p:68-88

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  1. Timmer, Marcel P. & Ypma, Gerard & Ark, Bart van der, 2003. "IT in the European Union: driving productivity divergence?," GGDC Research Memorandum 200363, Groningen Growth and Development Centre, University of Groningen. [Downloadable!]
  2. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Bertola, Giuseppe, 1994. "Flexibility, investment, and growth," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 215-238, October. [Downloadable!] (restricted)
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  4. Acs, Zoltán J & Audretsch, David B & Braunerhjelm, Pontus & Carlsson, Bo, 2006. "Growth and Entrepreneurship: An Empirical Assessment," CEPR Discussion Papers 5409, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  5. Nickell, Stephen J, 1996. "Competition and Corporate Performance," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 724-46, August. [Downloadable!] (restricted)
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  6. Nicoletti, Giuseppe & Scarpetta, Stefano, 2003. "Regulation, productivity, and growth : OECD evidence," Policy Research Working Paper Series 2944, The World Bank. [Downloadable!]
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  7. Boone, Jan, 2000. "Technological Progress, Downsizing and Unemployment," Economic Journal, Royal Economic Society, vol. 110(465), pages 581-600, July. [Downloadable!] (restricted)
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This page was last updated on 2009-11-22.


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