European Union Electric energy sector‘s infrastructure impact on economic growth
Keywords:European Union, Physical infrastructure, Electric energy, Economic growth, Long run, Short run, Cointegration
This paper tests electric energy sector‘s infrastructure impact on economic growth in the European Union during the 1990-2017 years time span. Paper‘s empirical research encompasses all 28 European Union countries (at that time) data, and fills the gap of such research in electric energy sector‘s case in the full European Union area. Two of three proxy variables used for this sector in the modelling are not only physical type, but with ability to encompass the usage of chosen infrastructure sector. It is a new feature in such type of research, which usually uses either raw physical, or raw monetary type infrastructure variables. The research results show (namely in proxy variables with infrastructure usage elements cases), that electric energy sector‘s infrastructure has no statistically significant long run impact on economic growth in the European Union. However, positive short run impact on economic growth in the European Union was found, with elasticity coefficients raging in [0,26;1,17] interval.