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On the linkage between Gross Value Added by Economic Activities and the Overall Gross Value Added in EU-27

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  • Andreescu Francesca Dana

    (Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

The financial and economic crisis led to a significant recession in the EU-27 in 2009, followed by a rebound in 2010. The existing economic situation requires a rethinking of the economic development policies, focused on analyzing the indicator of gross value added, created in production. This may lead to a new growth model, based on economic activities with higher value added. This paper investigates the linkage between overall gross value added in EU-27 and gross value added by economic activities, as described by NACE Rev. 2, from first quarter 2010 to second quarter 2020. The article attempts to include a wide range of statistical analysis and models for a complete assessment of the subject. Therefore, in order to achieve the objective, we choose to investigate the presence of causality relationships using VAR/SVAR models and Granger causality test, which reflect the presence of long and short-term relationships between certain selected variables. Through the assessment, we discovered a strong bi-directional causality between overall gross value added and the gross value added by industry and by distributive trades, transport, accommodation and food services, based on which we estimated a linear regression. The findings should present interest for policymakers, in order to assess perspectives to economic growth.

Suggested Citation

  • Andreescu Francesca Dana, 2021. "On the linkage between Gross Value Added by Economic Activities and the Overall Gross Value Added in EU-27," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 15(1), pages 1197-1207, December.
    • Handle: RePEc:vrs:poicbe:v:15:y:2021:i:1:p:1197-1207:n:4
    DOI: 10.2478/picbe-2021-0111
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    References listed on IDEAS

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    1. Robert Lehmann & Klaus Wohlrabe, 2014. "Forecasting gross value-added at the regional level: are sectoral disaggregated predictions superior to direct ones?," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 34(1), pages 61-90, February.
    2. Vyklyuk Yaroslav I. & Yevdokymenko Valeriy K. & Yaskal Ihor V., 2016. "The Proportions and Rates of Economic Activities as a Factor of Gross Value Added Maximization in Transition Economy," Scientific Annals of Economics and Business, Sciendo, vol. 63(1), pages 47-64, March.
    3. Florin-Marius PAVELESCU, 2012. "Fluctuation Of Economic Activity, Sectoral Distribution Of Gross Value Added And The Size Of Backward Multipliers In Romania During The Period 1989-2009," Romanian Journal of Economics, Institute of National Economy, vol. 35(2(44)), pages 88-112, December.
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