Comparative assessment of economic development in the countries of the European Union
Abstract
Investment, the entry of foreign firms depends of a large extent on the country’s goodwill, which is reflected in various ratings. This representation of the situation is approximate, as it does not estimate the differences between the values of the indicators with adjacent grades. This can be avoided by dividing countries into homogeneous groups. It is appropriate to do so on the basis of non-linear grouping rather than linear grouping. It is based on the transformation of data into a dimensionless scale and linear grouping. In the case, its homogeneity increases thanks to the levelling of the most distinctive values and the alignment of the statistical characteristics of the groups. The aim of the article is to propose in principle, a new approach to the ranking of countries on the basis of their level of economic development. It was found that the nonlinear decision of countries into homogenous groups and compared to the linear grouping more accurately reflect the current situation.
Keyword : economic development, gross domestic product, Harrington curves, non-linear grouping, interval compilation, homogenous group of countries
How to Cite
Trishch, R. M., Sichinava, A., Bartoš, V., Stasiukynas, A., & Schieg, M. (2023). Comparative assessment of economic development in the countries of the European Union. Journal of Business Economics and Management, 24(1), 20–36. https://doi.org/10.3846/jbem.2023.18320
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Bayar, Y., Remeikiene, R., Androniceanu, A., Gaspareniene, L., & Jucevicius, R. (2020). The shadow economy, human development and foreign direct investment inflows. Journal of Competitiveness, 12(1), 5–21. https://doi.org/10.7441/joc.2020.01.01
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Bolcarova, P., & Kološta, S. (2015). Assessment of sustainable development in the EU 27 using aggregated SD index. Ecological Indicators, 48, 699–705. https://doi.org/10.1016/j.ecolind.2014.09.001
Burns, D. K., Jones, A. P., Goryakin, Y., & Suhrcke, M. (2017). Is foreign direct investment good for health in low and middle income countries? An instrumental variable approach. Social Science & Medicine, 181(C), 74–82. https://doi.org/10.1016/j.socscimed.2017.03.054
Chursan, S. (2013). Assessing the sustainable development in Thailand. Procedia. Environmental Sciences, 17, 611–619. https://doi.org/10.1016/j.proenv.2013.02.077
Cicea, C., & Marinescu, C. (2021). Bibliometric analysis of foreign direct investment and economic growth relationship. A research agenda. Journal of Business Economics and Management, 22(2), 445–466. https://doi.org/10.3846/jbem.2020.14018
Čiegis, R., Ramanauskienė, J., & Šimanskienė, L. (2011). Lietuvos regionų darnaus vystymosi vertinimas [Sustainable development assessment of Lithuanian regions]. Klaipėdos universiteto leidykla (in Lithuanian).
Ganić, M., & Hrnjic, M. (2019). Does a country’s business regulatory environment affect its attractiveness to FDI? Empirical evidence from Central and Southeast European countries. Eastern Journal of European Studies, 10(2), 89–105.
Garbie, I. (2014). An analytical technique to model and assess sustainable development index in manufacturing enterprises. International Journal of Production Research, 52(16), 4876–4915. https://doi.org/10.1080/00207543.2014.893066
Gedvilaitė, D. (2019). The assessment of sustainable development of a country’s regions [Doctoral dissertation]. Technika. http://dspace.vgtu.lt/bitstream/1/3797/1/Gedvilaite%20disertacija%2005%2016nn.pdf
Ginevičius, R., Szczepańska-Woszczyna, K., Szarucki, M., & Stasiukynas, A. (2021a). Assessing alternatives to the development of administrative-economic units applying the FARE-M method. Administratie si Management Public, 36, 6–24. https://doi.org/10.24818/amp/2021.36-01
Ginevičius, R., Trishch, R., Remeikienė, R., & Gasparėnienė, L. (2021b). Complex evaluation of the negative variations in the development of Lithuanian municipalities. Transformations in Business & Economics, 20(2A(53A)), 635–653.
Godlewska-Majkowska, H., & Komor, A. (2021). Energy as a factor of investment attractiveness of regions for agricultural enterprises. Energies, 14(9), 2731. https://doi.org/10.3390/en14092731
Golubeva, O. (2020). Maximising international returns: Impact of IFRS on foreign direct investments. Journal of Contemporary Accounting & Economics, 16(2), 100200. https://doi.org/10.1016/j.jcae.2020.100200
Groh, A., Liechtenstein, H., Lieser, K., & Biesinger, M. (2018). The venture capital and private equity country attractiveness index 2018 (9th ed.). IESE Business School University of Navara. http://blog.iese.edu/vcpeindex/files/2018/02/report2018.pdf
Hasan, M., Ebrahim, Z., Wan Mahmood, W., & Ab Rahman, M. (2017). Sustainable-ERP system: A preliminary study on sustainability indicators. Journal of Advanced Manufacturing Technology (JAMT), 11(1), 61–74.
Huang, A. (2017). A framework and metrics for sustainable manufacturing performance evaluation at the production line, plant and enterprise levels [Doctoral dissertation]. University of Kentucky. https://doi.org/10.13023/ETD.2017.373
Jia, X., Foo, D. C. Y., Tan, R. R., & Li, Z. (2017). Sustainable development paths for resource-constrained process industries. Resources, Conservation and Recycling, 119, 1–13. https://doi.org/10.1016/j.resconrec.2016.11.004
Juščius, V., & Griauslytė, J. (2014). Lietuvos įmonių socialinės atsakomybės ataskaitų taikymas verslo praktikoje [Application of social responsibility reports of Lithuanian companies in business practice]. Organizacijų vadyba: sisteminiai tyrimai, 69, 55–70 (in Lithuanian). https://doi.org/10.7220/MOSR.1392.1142.2014.69.4
Kearney. (2021). The 2022 FDI Confidence Index. https://www.kearney.com/foreign-direct-investment-confidence-index/2022-full-report
Kozlova, M., & Collan, M. (2020). Renewable energy investment attractiveness: Enabling multi-criteria cross-regional analysis from the investors’ perspective. Renewable Energy, 150(C), 382–400. https://doi.org/10.1016/j.renene.2019.12.134
Lahrech, A., Alabdulwahab, S. Z., & Bouayach, S. (2020). Nation branding and how it is related to foreign direct investment inflows. International Journal of Economics and Financial Issues, 10(2), 248–255. https://doi.org/10.32479/ijefi.9345
Li, Z., Tang, D., Han, M., & Bethel, B. (2018). Comprehensive evaluation of regional sustainable development based on data envelopment analysis. Sustainability, 10(11), 1–18. https://doi.org/10.3390/su10113897
Lu, W.-C. (2017). Greenhouse gas emissions energy consumption and economic growth: A panel cointegration analysis for 16 Asian countries. International Journal of Environmental Research and Public Health, 14(11), 1436. https://doi.org/10.3390/ijerph14111436
Ly, A., Esperança, J., & Davcik, N. S. (2018). What drives foreign direct investment: The role of language, geographical distance, information flows and technological similarity. Journal of Business Research, 88, 111–122. https://doi.org/10.1016/j.jbusres.2018.03.007
Maza, A., & Villaverde, J. (2015). A new FDI potential index: Design and application to the EU regions. European Planning Studies, 23(12), 2535–2565. https://doi.org/10.1080/09654313.2015.1020771
Molly, K. M. (2018). Regional differences in Slovenia from the viewpoint of achieving Europe’s sustainable development. Acta Geographica Slovenia, 58(2), 2–46. https://doi.org/10.3986/AGS.3309
Oh, H. M., & Kim, W. Y. (2018). The effect of analyst coverage on the relationship between seasoned equity offerings and investment efficiency from Korea. Sustainability, 10(8), 2704. https://doi.org/10.3390/su10082704
Ouechtati, I. (2020). Institutions and foreign direct investment: A panel VAR approach. International Journal of Economic Sciences, 9(2), 55–70. https://doi.org/10.20472/ES.2020.9.2.004
Oželienė, D. (2019). Modelling the factors of a company’s sustainable development [Doctoral dissertation]. Vilnius Gediminas Technical University.
Radovanović, M., & Lior, N. (2017). Sustainable economic–environmental planning in Southeast Europe – beyond‐GDP and climate change emphases. Sustainable Development, 25(6), 580–594. https://doi.org/10.1002/sd.1679
Rodionov, D. G., Konnikov, E. A., & Nasrutdinov, M. N. (2021). A transformation of the approach to evaluating a region’s investment attractiveness as a consequence of the COVID-19 pandemic. Economies, 9(12), 59. https://doi.org/10.3390/economies9020059
Saisana, M., Montalto, V., Neves, A., & Damioli, G. (2020). Statistical audit of the 2020 Global Innovation Index. Joint Research Centre (JRC). https://www.wipo.int/edocs/pubdocs/en/wipo_pub_gii_2020-appendix5.pdf
Samborskyi, O., Isai, O., Hnatenko, I., Parkhomenko, O., Rubezhanska, V., & Yershova, O. (2020). Modeling of foreign direct investment impact on economic growth in a free market. Accouting, 6(5), 705–712. https://doi.org/10.5267/j.ac.2020.6.014
Sarkodie, S. A., & Strezov, V. (2019). Effect of foreign direct investments, economic development and energy consumption on greenhouse gas emissions in developing countries. Science of The Total Environment, 646(1), 862–871. https://doi.org/10.1016/j.scitotenv.2018.07.365
Singh, S. (2016). Development of Sustainable Manufacturing decision making modells for small and medium enterprises [Doctoral dissertation]. University of Malaya.
Slaper, T. F., & Hall, T. J. (2011). The triple bottom line: What is it and how does it work? Indiana Bussiness Review, 86(1), 4–8. https://www.ibrc.indiana.edu/ibr/2011/spring/article2.html
Šimelevič, K., & Bagdzevičienė, R. (2001). Kas yra regionas? [What is a region?]. In Tarptautinės mokslinės konferencijos “Regionų plėtra 2001” pranešimų medžiaga” (pp. 274–275). Technologija (in Lithuanian).
Šimelevič, K., & Bagdzevičienė, R. (2002). Regionalizacijos procesas – vienas iš svarbiausių veiksnių, užtikrinančių regionų ekonominę plėtrą [The process of regionalization as one of the most important factors ensuring the economic development of regions]. In Tarptautinės mokslinės konferencijos “Regionų plėtra 2002” pranešimų medžiaga (pp. 179–185). Technologija (in Lithuanian).
Tan, H. X., Yeo, Z., Ng, R., Tjandra, T. B., & Song, B. (2015). A sustainability indicator framework for Singapore small and medium-sized manufacturing enterprises. Procedia CIRP, 29, 132–137. https://doi.org/10.1016/j.procir.2015.01.028
Tarka, D., & Olszewska, A. M. (2018). Elementy statystyki. Opis statystyczny [Elements of statistics. Statistical description]. Oficyna Wydawnicza Politechniki Białostockiej (in Polish).
Trishch, R. M., & Slityuk, E. A. (2006). Generalized point and interval evaluation items ICE workmanship [Obobshchonnaya tochechnaya i interval’naya otsenki kachestva izgotovleniya detali DVS]. Eastern-European Journal of Enterprise Technologies, 1/2(19), 63–67.
UNCTAD. (2021). World Investment Report 2021. Investing in sustainable recovery. ` https://unctad.org/webflyer/world-investment-report-2021
Wang, L., Zhang, C., & Jiang, F. (2019). Matching governance mechanisms with transaction-specific investment types and supplier roles: An empirical study of cross-border outsourcing relationships. International Journal of Business Review, 28(2), 316–327. http://hdl.handle.net/20.500.11937/73274
Younsi, M., & Bechtini, M. (2019). Does good governance matter for FDI? New evidence from emerging countries using a static and dynamic panel gravity model approach. Economics of Transition and Institutional Change, 27(3), 841–860. https://doi.org/10.1111/ecot.12224