<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>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.</p>
</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.

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

This work is licensed under the Creative Commons Attribution 4.0 International License.

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...

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

Publié en ligne: 31 déc. 2021

Pages: 1197 - 1207

DOI: https://doi.org/10.2478/picbe-2021-0111

Mots clés
EU-27 economic growth, gross value added, VAR/SVAR models, Granger causality, Regression

© 2021 Francesca Dana Andreescu, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

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

Publié en ligne: 31 déc. 2021

Pages: 1197 - 1207

DOI: https://doi.org/10.2478/picbe-2021-0111

Mots clésEU-27 economic growth, gross value added, VAR/SVAR models, Granger causality, Regression

© 2021 Francesca Dana Andreescu, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Mots clés
EU-27 economic growth, gross value added, VAR/SVAR models, Granger causality, Regression