Arno Tausch () (Innsbruck University) Almas Heshmati () (University of Kurdistan Hawler, HIEPR and IZA) Chemen S.J. Bajalan () (University of Kurdistan Hawler, Queens University Belfast and HIEPR)
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Starting from Professor Kornai’s assertion about the necessity to focus on the long-term perspectives of the transformation process, we analyze in this paper the Lisbon performance of the countries of the European Union from such a long-term, structural perspective. We present in a simple form the mathematical methods used in this essay. Then, we analyze Lisbon indicator performance by factor analytical means. We conclude that only a Schumpeterian vision of capitalism as a process of "creative destruction" - or rather - "destructive creation" can explain these contradictions, which we empirically reveal in this analysis, and which beset the "Lisbon process" from the very beginning. Our factor analysis tells us that a majority of the kernel Lisbon indicators go indeed hand in hand with high comparative price levels; high freight transport; high greenhouse gas emissions; low business investment rates; and low youth educational attainment rates. We conclude that in reality we are facing four underlying and contradictory processes including a Lisbon productivity factor; high eco-social exclusion; the employment performance; and the neoliberal European model.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
3198.
Find related papers by JEL classification: C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models F15 - International Economics - - Trade - - - Economic Integration R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes F2 - International Economics - - International Factor Movements and International Business F5 - International Economics - - International Relations and International Political Economy
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