Europe 2020 implementation as driver of economic performance and competitiveness. Panel analysis of CEE countries

Abstract

The Europe 2020 strategy is the EU strategy for sustainable and inclusive growth, for fighting the structural weaknesses of the European economies, and for improving their competitiveness. In this paper, we determined the most important ratios of the Europe 2020 Strategy impacting on economic performance expressed as the growth of the GDP per capita, and on economic competitiveness expressed as the share of the countries' exports in total world exports for some selected Central and Eastern European (CEE) countries (Poland, Slovakia, Bulgaria, Hungary, the Czech Republic, and Romania) using co-integration tests and OLS panel estimations with a dataset between 2004 (after four of these selected countries acceded to EU) and 2015 (the latest available data for all the ratios we used in our analysis). Our findings show that the tertiary level of education is the most important factor, positively correlated with both endogenous variables mentioned above. Other important factors for achieving the economic performance and competitiveness goals are the school dropout ratio, the share of renewable energy in final energy consumption, and the employment rate.