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The Role of Entrepreneurial Activities, ICT and Energy Consumption in the Economic Growth: An Econometric Evidence of EU Countries

Introduction

The role of entrepreneurial activities, ict and energy consumption in the economic growth: an econometric evidence of eu countries. Discover how entrepreneurial activities, ICT, and energy consumption drive economic growth in 17 EU countries (2000-2023). Econometric analysis shows their strong contribution to GDP.

Abstract

The objective of the study to develop the linkages between economic growth (GDP), energy consumption, information and communication technology (ICT), and total entrepreneurial activities (TEA) in 17 European Union countries over the period 2000-2023. Annual data were analyzed using co-integration tests such as Fisher, Kao, Westerlund, and Pedroni to determine the long-term relationship among the variables. The study also employed PMG to examine the long-run elasticities, as well as DOLS and DMOLS for robustness. The results indicated that increased entrepreneurial activities, energy consumption, and ICT lead to growth in GDP in the EU region. This means that in the current situation, entrepreneurial activities strongly contribute to robust economic growth, which may result in developing sustainable, stable and progressive societies/economies. Furthermore, the study noted bidirectional causality running between the considered variables.

Review

This study offers a highly relevant and timely investigation into the complex interplay between economic growth, entrepreneurial activities, information and communication technology (ICT), and energy consumption within 17 European Union countries over a substantial period (2000-2023). The objective to develop these linkages is crucial for understanding contemporary economic dynamics and formulating effective policies. The abstract clearly states the use of advanced econometric methods, including multiple co-integration tests (Fisher, Kao, Westerlund, Pedroni) to ascertain long-term relationships, and PMG, DOLS, and DMOLS for examining long-run elasticities and ensuring robustness. The overarching finding that increased entrepreneurial activities, energy consumption, and ICT consistently lead to GDP growth in the EU region is a significant contribution, particularly emphasizing the strong role of entrepreneurship in fostering robust economic development. The methodological approach outlined in the abstract demonstrates a rigorous commitment to establishing reliable empirical evidence. The application of multiple panel co-integration techniques, coupled with various robustness checks, substantially enhances the credibility of the identified long-run relationships among the variables. This comprehensive econometric strategy is a definite strength, providing a solid foundation for the study's conclusions. The results indicating a positive contribution of all considered factors to economic growth are compelling, aligning with theoretical expectations while providing specific evidence for the EU context. The claim of "bidirectional causality running between the considered variables" is particularly intriguing, suggesting dynamic feedback loops. While the abstract does not elaborate on which specific pairs exhibit this bidirectionality, this finding, if detailed in the full paper, would add considerable nuance to the understanding of these interdependencies. In conclusion, this paper presents a valuable and well-executed econometric analysis contributing significantly to the literature on economic growth drivers in the EU. The robust findings strongly support the notion that fostering entrepreneurial ecosystems, investing in ICT infrastructure, and managing energy consumption are critical pathways to achieving sustainable and stable economic progress. The policy implications are clear: EU countries should prioritize strategies that stimulate entrepreneurship and digital adoption, while also carefully considering energy policies that support growth without compromising sustainability goals. Future research might further explore the heterogeneity of these relationships across different EU member states or delve into the specific types of entrepreneurial activities and ICT investments that yield the most substantial and sustainable growth dividends.

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