Structural Change and Economic Growth in Schengen Region

Authors

  • Tahir Mahmood Assistant Professor,School of Economics, Quaid-i-Azam Universtity, Islamabad, Pakistan
  • Mikael Linden

Abstract

The structural change of economy entails that in the long run how the dynamics of three main sectors (i.e. agriculture, industry and services) are related to economic growth. We conduct Granger non-causality (GC) tests with data from 15 Schengen countries in period 1970-2012. The results confirmed that industry sector is still the “engine” of economy and the larger service sector retards the gross domestic product per capita (GDPc) growth rate in Schengen region. The results support Baumol's argument concerning the productivity differences and their growth effects across the sectors.

Keywords: Sector shares, economic growth, panel data, co-integration, error correction

JEL Classifications:  E1, E2, J, O1, O4

Downloads

Download data is not yet available.

Author Biography

Tahir Mahmood, Assistant Professor,School of Economics, Quaid-i-Azam Universtity, Islamabad, Pakistan

Assistant Professor at School of Economics, Quaid-i-Azam university islamabad, Pakistan

Downloads

Published

2017-01-13

How to Cite

Mahmood, T., & Linden, M. (2017). Structural Change and Economic Growth in Schengen Region. International Journal of Economics and Financial Issues, 7(1), 303–311. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/3547

Issue

Section

Articles