Browsing by Author "Gaspar, Tatiana Luis"
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- The role of green technology innovation and governance on economic convergence: Evidence from 21 European countriesPublication . Gaspar, Tatiana Luis; Moutinho, Vítor Manuel Ferreira; Marques, Luís Miguel Soares SantosEuropean economic growth has been marked by different trajectories among different countries. On the one hand, countries such as Ireland, Luxembourg, and Denmark have high GDP per capita values, due to favourable fiscal policies, while Hungary and Latvia have growth below the European average. Although the differences in behaviour of different countries have already been studied, the literature lacks studies that assess the impact of innovation in green technologies and governance on economic convergence. This paper aims to fill this gap through a comparative analysis between countries above and below the European average, in terms of economic growth, treating the dependent variable of the study as the absolute difference between the GDP per capita of each country and the GDP per capita of the European average. The research was done for 21 European countries, from 2005 to 2023. On one hand, the results obtained from the Generalized Method of Moments show that, in countries with economic growth above the average, determinants like investment, trade and green technology innovations promote economic divergence, while labour force with basic education can drive economic convergence. On the other hand, countries with economic growth below the average demonstrate that labour force with advanced education and governance drive economic divergence, while convergence is driven by technological factors. Determinants like governance and green technologies can generate inequalities if not complemented with institutional support. So, public policies are important to the development of a sustained economic growth and aligned with the European average. For this convergence to be effective, it is important to reinforce policies that promote institutional capacity, education, and investment in research and development, in an adaptive way to the institutional characteristics of each country.