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Structural Change and Economic Growth in Schengen Region

Author

Listed:
  • Tahir Mahmood

    (University of Eastern Finland, Joensuu, Finland)

  • Tahir Mahmood

    (School of Economics, QAU, Islamabad, Pakistan,)

  • Mikael Linden

    (Department of Law, University of Eastern Finland, Joensuu campus, Finland)

Abstract

The structural change of economy entails that in the long run how the dynamics of three main sectors (i.e., agriculture, industry and services) are related to economic growth. We conduct Granger non-causality tests with data from 15 Schengen countries in period 1970-2012. The results confirmed that industry sector is still the engine of economy and the larger service sector retards the gross domestic product per capita (GDPc) growth rate in Schengen region. The results support Baumol's argument concerning the productivity differences and their growth effects across the sectors.

Suggested Citation

  • Tahir Mahmood & Tahir Mahmood & Mikael Linden, 2017. "Structural Change and Economic Growth in Schengen Region," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 303-311.
    • Handle: RePEc:eco:journ1:2017-01-40
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    References listed on IDEAS

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    2. Tahir Mahmood & Shafqut Ullah & Muhammad Mumtaz, 2021. "Dependence of Energy Intensity on Economic Growth: Panel Data Analysis of South Asian Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 234-239.

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    More about this item

    Keywords

    Sector Shares; Economic Growth; Panel Data; Co-integration; Error Correction;
    All these keywords.

    JEL classification:

    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • J - Labor and Demographic Economics
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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