GDP growth and its determinants in the European Union

Abstract

The aim of this paper is to determine the variables that affect Gross Domestic Product (GDP) per capita growth. We analyze the main theoretical approaches that provide alternative factors to explain GDP growth and study these determinants for a group of EU countries. Using data for 22 countries and employing Ordinary Least Square model (OLS) find that openness, population growth and the crisis are significant determinants, but an important degree of heterogeneity may be present.