Abstract:

The purpose of the study is to identify the factors influencing economic growth in the EU-28 countries, over a period of 10 years. The database includes the dependent variable, GDP per capita, as well as the independent variables: government revenue, government expenditure, foreign direct investment, trade openness, consumer price index, unemployment rate, and index of economic freedom. The results of the empirical analysis highlight a significant and positive impact of government revenue, government expenditure, trade openness, and index of economic freedom on economic growth, while the unemployment rate has both a positive and a negative influence on economic growth, depending on the estimation model used in the analysis. In the end, the most significant conclusions are presented by referring to the studies from the literature review.