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Gross Capital Formation And Economic Growth During Early 2000’S In Eu-Member And Candidates States

  • Florin-Marius PAVELESCU

    ()

    (Institute of National Economy)

The purpose of this paper is to reveal the correlation between the gross capital formation and the gross domestic product in countries of the European Union in 2007, during the period 1999-2006. The evaluation is made both on demand side and on supply side. On the demand side we take into account the gross capital formation dynamics and structure and the gross domestic product dynamics. On the supply side calculate the capital accumulation efficiency, through modification of the formulae resulted from Domar’s economic growth model in order to emphasise the impact of domestic demand and net export changes. In the end we present some conclusions and proposals for gross capital formation contribution to economic growth methodology improvement.

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Article provided by Institute of National Economy in its journal Romanian Journal of Economics.

Volume (Year): 26 (2008(XVIII))
Issue (Month): 1(35) (June)
Pages: 166-179

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Handle: RePEc:ine:journl:v:1:y:2008:i:26:p:166-179
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  1. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
  2. Engelbert Stockhammer, 2007. "Some Stylized Facts on the Finance-Dominated Accumulation Regime," Working Papers wp142, Political Economy Research Institute, University of Massachusetts at Amherst.
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