Federation on Economic Growth

Abstract

In the present paper an empirical analysis with panel data will point out that a Federal System fosters economic growth even during the period of world economic crisis in which technology does not matter economic growth wise. Our sample covers many advanced economies during the period 2005-2011. This finding should be taken into serious consideration by the policy makers as far as EU survival is concerned. The elaboration of these panel data is made feasible by means of the Eviews software package.

Keywords: EU; Federal System; Welfare; Economic Growth; Research and Development expenditure (% of GDP); Econometric models (single equation).

JEL Classification: F43, H53, C23.