Sustainable growth of EU economies and Baltic context: Characteristics and modelling

Abstract

The united general growth strategy for all EU Member States, a common economic and political vision as well as location in the same geographic region provides a necessary basis for the benchmarking modelling of economies. The main objective of this study is determination of the functional regularities and drivers of the growth of EU economies and the context of the Baltic States in line with the general trend of the EU, as well as development of the growth model, which can be used for sustainable planning and prediction. Analysis of several regularly published analytical indexes suggests a thesis on innovation as the real basic driving force for EU economies and outlines Innovation Performance Index, which have a very strong compliance with the economic growth of particular country. At the same time study of the data set and methodology of the Index indicates space for further optimization. By use of several linear regression tools the growth model was created. It is based on three hard independent statistical indicators (predictors) only; of course, these indicators is a peak of a complex pyramid. Despite of the simplicity of the model, the long-term correlation of fitted values with the real GDP per capita is extremely strong 0.961-0.987).

Different characteristics of the aggregate of accounting earnings between developed and developing countries: Evidence for predicting future GDP

“…It also depicts that the GDP and its growth reflect all the firms' and households' income within a country (Bureau, 2002(Bureau, , 2004(Bureau, , 2007Karnitis & Karnitis, 2017;Oliinyk & Kozmenko, 2019). Accounting earnings showing the difference between income and expenses should reflect the GDP and its growth (Bureau, 2002(Bureau, , 2004(Bureau, , 2007Karnitis & Karnitis, 2017;Shkolnyk, Kozmenko, Kozmenko, & Mershchii, 2019;Tung, 2018). On the other hand, this study maintains and re-examines the concept developed by Konchitchki and Patatoukas (2014), and Sumiyana et al (2019).…”

“…GDP and its growth reflect all the firms' consumption, as well as the households' consumption within a country. It also depicts that the GDP and its growth reflect all the firms' and households' income within a country (Bureau, 2002(Bureau, , 2004(Bureau, , 2007Karnitis & Karnitis, 2017;Oliinyk & Kozmenko, 2019). Accounting earnings showing the difference between income and expenses should reflect the GDP and its growth (Bureau, 2002(Bureau, , 2004(Bureau, , 2007Karnitis & Karnitis, 2017;Shkolnyk, Kozmenko, Kozmenko, & Mershchii, 2019;Tung, 2018).…”

Key Drivers of Digitalization; EU Context and Baltic Case

“…an acceleration of the growth caused by digitalization. For many EU countries (including the Baltic States) the prioritization is an essential factor; for the time being, they are not able to invest immediately and simultaneously in all aspects (see more in (Karnitis et al, 2017) on economic gap between currently more successful Northern Europe and catching up Southern and Eastern Europe).…”

The ways of forming the sustainable development of rural areas of Ukraine

“…The modern priorities of the developed countries of the world, in particular the European Union, Switzerland, Japan, Canada, and the United States, in relation to sustainable development, include the desire to ensure people's welfare through the introduction of the principle of social justice (Karnitis, 2017).…”