How Natural Resources, Corruption, Globalization, and CO2 Emissions Affect the Economic Growth in Europe?

This study investigates the impact of economic, political, social, and environmental variables on economic growth in the Member States of the European Union. A study was carried out based on scoreboard data for the 27 Member States of the European Union from 1995 to 2019, using Panel-Corrected Standard Errors in the first phase and DOLS (Dynamic Ordinary Least Squares), FMOLS (Fully Modified Ordinary Least Squares), PMG (Pooled Mean Group), and DFE (Dynamic Fixed Effect) estimators in the second phase. The static analysis results show that for all coefficients associated with the selected drivers for economic growth, significant statistical evidence is observed. Moreover, according to the results in the second phase, the long-term results of the estimators show that the variables CO2 emissions and the corruption perception index positively influence the economic growth of different countries. In contrast, the variables Total Incomes of Natural Resources and Jure Political Globalization Index negatively influence it. In the short term, in the DFE estimator, the only variable that negatively influences the economic growth of different countries is Total Natural Resource Rents and referring to the FMOLS and DOLS estimators, the only variable that negatively influences economic growth is the Jure Political Globalization Index.