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Determinants of Economic Growth across the European Union: A Panel Data Analysis on Small and Medium Enterprises

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  • Larissa M. Batrancea

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

Abstract

Across the European Union, small and medium enterprises (SMEs) are major contributors to the increase of the regional gross domestic product. The present study investigates the relationship between economic growth, imports and exports regarding the activity of small and medium enterprises within the European Union (EU-28). A panel generalized method of moments (GMM) analysis and a panel two-stage least squares (2SLS) analysis were carried out for the period 2005–2020. Empirical results indicated that online imports and exports together with extra-EU imports and exports had a significant impact on economic growth, proxied by value added, venture capital investments and turnover from e-commerce. In the light of these results, regional and national authorities are called to support business endeavors of small and medium enterprises due to their relevance on the market and contribution to the financing of national budgets.

Suggested Citation

  • Larissa M. Batrancea, 2022. "Determinants of Economic Growth across the European Union: A Panel Data Analysis on Small and Medium Enterprises," Sustainability, MDPI, vol. 14(8), pages 1-17, April.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:8:p:4797-:d:795577
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    2. Emilia Herman & Kinga-Emese Zsido, 2023. "The Financial Sustainability of Retail Food SMEs Based on Financial Equilibrium and Financial Performance," Mathematics, MDPI, vol. 11(15), pages 1-26, August.
    3. Pejman Peykani & Mostafa Sargolzaei & Mohammad Hashem Botshekan & Camelia Oprean-Stan & Amir Takaloo, 2023. "Optimization of Asset and Liability Management of Banks with Minimum Possible Changes," Mathematics, MDPI, vol. 11(12), pages 1-24, June.
    4. Małgorzata Wosiek, 2023. "Unemployment and Enterprise Births in European Countries: A Sectoral Approach," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    5. Larissa M. Batrancea & Mehmet Ali Balcı & Leontina Chermezan & Ömer Akgüller & Ema Speranta Masca & Lucian Gaban, 2022. "Sources of SMEs Financing and Their Impact on Economic Growth across the European Union: Insights from a Panel Data Study Spanning Sixteen Years," Sustainability, MDPI, vol. 14(22), pages 1-18, November.
    6. Larissa M. Batrancea & Ömer Akgüller & Mehmet Ali Balcı & Anca Nichita, 2024. "Financial network communities and methodological insights: a case study for Borsa Istanbul Sustainability Index," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-27, December.

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