Shaping Europe’s Journey to Economic Prosperity – Challenges and Opportunities

Abstract

Economic growth models often inform policy decisions, making it crucial to account for the potential impact of policy interventions accurately. However, predicting the effects of policy changes is inherently challenging due to the complexity of economic systems. The European Union presents a unique case study for economic growth modeling due to its size, diversity, and level of integration. Modeling the economic growth of the European Union involves analyzing a complex interplay of factors that influence the economies of its member states as well as the EU as a whole. Thus, modeling EU economic growth becomes a multifaceted task that requires integrating insights from various theoretical frameworks, empirical methods, and data sources. EU economic growth modeling requires harmonizing data from various sources, including Eurostat, national statistical offices, and international organizations, to ensure consistency and comparability across countries and time periods. While modeling economic growth poses numerous challenges, such as: endogeneity issues, measurement errors, and data gaps in economic data, ongoing advancements in data analytics, interdisciplinary collaboration, and modeling techniques offer promising opportunities to improve the accuracy and relevance of growth models. By leveraging these opportunities, researchers can better understand the dynamics of economic growth and inform more effective policy decisions.