Share:


Developing an economic and social security index for Euro-Atlantic area countries: a panel data analysis

    Andreea Claudia Șerban   Affiliation
    ; Ionuț Jianu   Affiliation

Abstract

The concepts of economic and social security are very complex and dynamic, closely related to many new challenges that characterize today’s societies. Our research aims at investigating the economic and social security considering the current vulnerabilities, using an integrated multicriteria approach to this issue, taking into account five pillars (dimensions): demographic, climate, globalization, and ITC adaptation, social, and economic. Based on these dimensions, we developed an Economic and Social Security Index across the Euro-Atlantic countries and we found that the European Union (EU) is better positioned compared to the other country-groups analysed. Furthermore, we estimated the effects of duration of schooling and climate degradation on economic growth, by using the Panel EGLS method over the period 2010–2019, and we compared the results obtained for EU countries to the ones obtained for the other groups of countries in EuroAtlantic space: EU neighbours and candidate/potential candidate countries and other Eastern EU neighbourhood countries. We found a positive impact of the duration of schooling on the economic growth, which is greater in countries registering high levels of socio-economic security, the effect of the duration of schooling varying depending on the quality of education. In terms of the effects of CO2 emissions on economic growth, we found a negative impact, considering the one year lag.

Keyword : economic security, social security, economic growth, schooling, environment, demographic

How to Cite
Șerban, A. C., & Jianu, I. (2023). Developing an economic and social security index for Euro-Atlantic area countries: a panel data analysis. Journal of Business Economics and Management, 24(1), 112–135. https://doi.org/10.3846/jbem.2023.18610
Published in Issue
Mar 1, 2023
Abstract Views
534
PDF Downloads
535
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Acemoglu, D., & Robinson, J. A. (2012). Why nations fail: The origins of power, prosperity and poverty. Crown Publishers.

Ahmed, E. M. (2021). Modelling information and communications technology cyber security externalities spillover effects on sustainable economic growth. Journal of The Knowledge Economy, 12(1), 412–430. https://doi.org/10.1007/s13132-020-00627-3

Ang, J. B. (2008). Economic development, pollutant emissions and energy consumption in Malaysia. Journal of Policy Modelling, 30(2), 271–278. https://doi.org/10.1016/j.jpolmod.2007.04.010

Azam, M., Khan, A. Q., Abdullah, H. B., & Qureshi, M. E. (2016). The impact of CO2 emissions on economic growth: Evidence from selected higher CO2 emissions economies. Environmental Science and Pollution Research, 23(7), 6376–6389. https://doi.org/10.1007/s11356-015-5817-4

Balitskiy, S., Bilan, Y., Strielkowski, W., & Štreimikienė, D. (2016). Energy efficiency and natural gas consumption in the context of economic development in the European Union. Renewable and Sustainable Energy Reviews, 55(C), 156–168. https://doi.org/10.1016/j.rser.2015.10.053

Baltagi B. H. (2005). Econometrics analysis of panel data (3rd ed.). John Wiley & Sons Ltd.

Beland, L., Brodeur, A., & Wright, T. (2020). The short-term economic consequences of Covid-19: Exposure to disease, remote work and government response (IZA Discussion Paper No. 13159). Institute of Labor Economics. https://doi.org/10.2139/ssrn.3584922

Benos, N., & Zotou, S. (2014). Education and economic growth: A meta-regression analysis. World Development, 64(C), 669–689. https://doi.org/10.1016/j.worlddev.2014.06.034

Bhattacharya, M., Paramati, S. R., Ozturk, I., & Bhattacharya, S. (2016). The effect of renewable energy consumption on economic growth: Evidence from top 38 countries. Applied Energy, 162(C), 733–741. https://doi.org/10.1016/j.apenergy.2015.10.104

Borowski, P., & Patuk, I. (2021). Environmental, social and economic factors in sustainable development with food, energy and eco-space aspect security. Present Environment and Sustainable Development, 15(1), 153–169. https://doi.org/10.15551/pesd2021151012

Bosworth, B., & Collins, S. (2003). The empirics of growth: An update. Brookings Papers on Economic Activity, 2003(2), 113–206. https://doi.org/10.1353/eca.2004.0002

Carone, G., Costello, D., Guardia, N. D., Mourre, G., Przywara, B., & Salomaki, A. (2005). The economic impact of ageing populations in the EU25 Member States (Directorate General for Economic and Financial Affairs European Economy Economic Working Paper No. 236). https://doi.org/10.2139/ssrn.873872

Cuaresma, J. C., Doppelhofer, G., & Feldkircher, M. (2014). The determinants of economic growth in European regions. Regional Studies, 48(1), 44–67. https://doi.org/10.1080/00343404.2012.678824

Damon, J. (2016). The socio-economic impact of social security (ISSA research report). International Social Security Association, Geneva. https://ww1.issa.int/sites/default/files/documents/publications/2-ISSA_SEISS-205770.pdf

Dang H. A. H., & Nguyen, C. V. (2021). Gender inequality during the COVID-19 pandemic: Income, expenditure, savings, and job loss. World Development, 140, 105296. https://doi.org/10.1016/j.worlddev.2020.105296

Ehrlich, I., & Lui, F. T. (1998). Social security, the family, and economic growth. Economic Inquiry, 36(3), 390–409. https://doi.org/10.1111/j.1465-7295.1998.tb01722.x

European Commission. (1993). Growth, competitiveness, employment – The challenges and ways forward into the 21st century – White Paper. https://op.europa.eu/en/publication-detail/-/publication/4e6ecfb6-471e-4108-9c7d-90cb1c3096af/language-en

European Commission. (2010). Europe 2020. A Europe strategy for smart, sustainable and inclusive growth. https://ec.europa.eu/eu2020/pdf/COMPLET%20EN%20BARROSO%20%20%20007%20-%20Europe%202020%20-%20EN%20version.pdf

European Commission. (2020a). The impact of COVID confinement measures on EU labor market. https://ec.europa.eu/jrc/sites/jrcsh/files/jrc.120585_policy.brief_impact.of_.COVID-19.on_.eu-labour.market.pdf

European Commission. (2020b). 2020 European semester: Country reports. https://ec.europa.eu/info/publications/2020-european-semester-country-reports_en

European Commission. (2021). The 2021 ageing report: Economic and budgetary projections for the EU member states (2019–2070). https://ec.europa.eu/info/publications/2021-ageing-report-economic-and-budgetary-projections-eu-member-states-2019-2070_en

European Parliament. (2016). Addressing global poverty and insecurity through better transatlantic cooperation. https://www.europarl.europa.eu/RegData/etudes/BRIE/2016/586646/EPRS_BRI(2016)586646_EN.pdf

Eurostat. (2022). Database. https://ec.europa.eu/eurostat/data/database

Feldmann, H. (2004). How flexible are labour markets in the EU accession countries Poland, Hungary and the Czech Republic? Comparative Economic Studies, 46(2), 272–310. https://doi.org/10.1057/palgrave.ces.8100026

Francu, L., Hlousek, M., & Mikula, S. (2015, February). Determinants of economic growth. International Conference Hradec Economic Days, 5(4), 146–153.

Goczek, L., Witkowska, E., & Witkowski, B. (2021). How does education quality affect economic growth? Sustainability, 13(11), 6437. https://doi.org/10.3390/su13116437

Gongcheng, Z., & Scholz, W. (2019). Global social security and economic development: Retrospect and prospect. International Labour Organization. https://www.ilo.org/beijing/information-resources/public-information/factsheets/WCMS_723404/lang--en/index.htm

Hanushek, E. A., & Wößmann, L. (2007). The role of education in economic growth (Policy Research Working Paper 4122). The World Bank. https://doi.org/10.1596/1813-9450-4122

Heritage Foundation. (2022). Heritage Database. https://www.heritage.org/index/

Ignatov, A. (2019). Analysis of the dynamics of the European economic security in the conditions of a changing socio-economic environment. New Medit, 18(2), 15–38. https://doi.org/10.30682/nm1902b

International Labor Organization. (2020a). The world of work in a time by COVID-19. ILO. https://www.ilo.org/wcmsp5/groups/public/---americas/---ro-lima/---sro-port_of_spain/documents/meetingdocument/wcms_741723.pdf

International Labor Organization. (2020b). ILO Monitor: COVID-19 and the world of work. Third edition. https://www.ilo.org/wcmsp5/groups/public/@dgreports/@dcomm/documents/briefingnote/wcms_743146.pdf

International Monetary Fund. (2022). World Economic Outlook databases. https://www.imf.org/en/Publications/SPROLLS/world-economic-outlook-databases#sort=%40imfdate%20descending

Kasperowicz, R. (2015). Economic growth and CO2 emissions: The ECM analysis. Journal of International Studies, 8(3), 91–98.

Kotschy, R., & Sunde, U. (2018). Can education compensate the effect of population ageing on macroeconomic performance? Economic Policy, 33(96), 587–634. https://doi.org/10.1093/epolic/eiy011

Leit, N. C. (2014). Economic growth, carbon dioxide emissions, renewable energy and globalization. International Journal of Energy Economics and Policy, 4(3), 391–399.

Maity, S., & Sinha, A. (2021). Linkages between economic growth and population ageing with a knowledge spillover effect. Journal of the Knowledge Economy, 12(4), 1905–1924. https://doi.org/10.1007/s13132-020-00696-4

Moen, P., Pedtke, J. H., & Flood, S. (2020). Disparate disruptions: Intersectional COVID-19 employment effects by age, gender, education, and race / ethnicity. Work Aging and Retirement, 6(4), 207–228. https://doi.org/10.1093/workar/waaa013

North Atlantic Treaty Organization. (2022). Euro-Atlantic Partnership Council. https://www.nato.int/cps/en/natohq/topics_49276.htm

Okewu, E., Misra, S., Fernandez-Sanz, L., Maskeliunas, R., & Damaševičius, R. (2018). An e-Environment system for socio-economic sustainability and national security. Problemy Ekorozwoju, 13(1), 121–132.

OECD. (2008). Handbook on constructing composite indicators: Methodology and user guide. OECD Publications, Paris. https://www.oecd.org/sdd/42495745.pdf

OECD. (2020). Coronavirus: The world economy at risk. OECD Interim Economic Assessment. https://www.oecd.org/berlin/publikationen/Interim-Economic-Assessment-2-March-2020.pdf

Osaulenko, O., Yatsenko, O., Reznikova, N., Rusak, D. & Nitsenko, V. (2020). The productive capacity of countries through the prism of sustainable development goals: Challenges to international economic security and to competitiveness. Financial and Credit Activity: Problems of Theory and Practice, 2(33), 492–499. https://doi.org/10.18371/fcaptp.v2i33.207214

Our World in Data Database. (2022). Database. https://ourworldindata.org/

Rahman, M. M., & Alam, K. (2021). Exploring the driving factors of economic growth in the world’s largest economies. Heliyon, 7(5), e07109. https://doi.org/10.1016/j.heliyon.2021.e07109

Rauter, R., Globocnik, D., Perl-Vorbach, E., & Baumgartner, R. J. (2019). Open innovation and its effects on economic and sustainability innovation performance. Journal of Innovation & Knowledge, 4(4), 226–233. https://doi.org/10.1016/j.jik.2018.03.004

Roggeri, P., Belward, A., Mayaux, P., Hugh, E., Brink, A., Dubois, G., Peedell, S., & Olivier, L. (2010). Sustainable development in developing countries: The African, Caribbean and Pacific Observatory. Technological and Economic Development of Economy, 16(4), 736–752. https://doi.org/10.3846/tede.2010.45

Saidi, K., & Hammami, S. (2015). The impact of energy consumption and CO2 emissions on economic growth: Fresh evidence from dynamic simultaneous-equations models. Sustainable Cities and Society, 14, 178–186. https://doi.org/10.1016/j.scs.2014.05.004

Scholte, J. (1998). The IMF meets civil society. Finance and Development, 35(3), 42–45. https://doi.org/10.5089/9781451952278.022

Serban, A. C., & Lytras, M. D. (2020). Artificial intelligence for smart renewable energy sector in Europe – Smart energy infrastructures for next generation smart cities. IEEE Access, 8(1), 77364–77377. https://doi.org/10.1109/ACCESS.2020.2990123

Serban, A. C., Pelinescu, E., & Dospinescu, A. S. (2022). Beta convergence analysis of gross value added in the high-technology manufacturing industries. Technological and Economic Development of Economy, 28(2), 290–312. https://doi.org/10.3846/tede.2021.15918

Dias, M. C., Joyce, R., Postel-Vinay, F., & Xu, X. (2020). The challenges for labour market policy during the COVID-19 pandemic. Fiscal Studies, 41(2), 371–382. https://doi.org/10.1111/1475-5890.12233

Singh, N., Nyuur, R., & Richmond, B. (2019). Renewable energy development as a driver of economic growth: Evidence from a multivariate panel data analysis. Sustainability, 11(8), 2418. https://doi.org/10.3390/su11082418

Shahbaz, M., Hye, Q. M. A. H., Tiwari, A. K., & Leitão, N. C. (2013). Economic growth, energy consumption, financial development, international trade and CO2 emissions in Indonesia. Renewable and Sustainable Energy Reviews, 25, 109–121. https://doi.org/10.1016/j.rser.2013.04.009

Smolentseva, A. (2012). Access to higher education in the Post-Soviet states: Between Soviet legacy and global challenges. Salzburg Global Seminars, Austria. Statista. (2022). Database. https://www.statista.com/

Tiwari, A. K. (2011). Energy consumption, CO2 emissions and economic growth: A revisit of the evidence from India. Applied Econometrics and International Development, 11(2), 165–189.

Tomislav, K. (2018). The concept of sustainable development: From its beginning to the contemporary issues. Zagreb International Review of Economics & Business, 21(1), 67–94. https://doi.org/10.2478/zireb-2018-0005

United Nations. (2015). Transforming our world: The 2030 agenda for sustainable development. Department of Economic and Social Affairs.

United Nations. (2020a). Shared responsibility, global solidarity: Responding to the socio-economic impacts of COVID-19. https://unsdg.un.org/sites/default/files/2020-03/SG-Report-Socio-Economic-Impact-of-Covid19.pdf

United Nations. (2020b). Recovering better: Economic and social challenges and opportunities. https://www.un.org/development/desa/en/wp-content/uploads/2020/07/RECOVER_BETTER_0722-1.pdf

United Nations. (2021). A new global deal must promote economic security. Department of Economic and Social Affairs. Decade of Action. Policy Brief No 90. https://www.un.org/development/desa/dpad/wp-content/uploads/sites/45/publication/PB_90.pdf

United Nations. (2022). UN Database. https://data.un.org/Default.aspx

Vlasov, M. V. (2021). Regional economic security in innovative digital environment of Russia. International Transaction Journal of Engineering Management & Applied Sciences & Technologies, 12(4), 12A4P. World Data. (2022). Database. https://www.worlddata.info/

World Economic Forum. (2019). Global competitiveness report 2019. Geneva, Switzerland. https://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf?_gl=1*1v8usri*_up*MQ..&gclid=Cj0KCQiA1NebBhDDARIsAANiDD3-ZKDPsJ3XbKBaJs8X2KhgEN6KeTd0-LoiTH2qylHGJF-JPIw-pIUaAhJ-EALw_wcB

Wang, S. (2020). Spatial patterns and social-economic influential factors of population aging: A global assessment from 1990 to 2010. Social Science & Medicine, 253(1), 112963. https://doi.org/10.1016/j.socscimed.2020.112963

Wooldridge, J. M. (2010). Econometric analysis of cross section and panel data (2nd ed.) The MIT Press. World Bank. (2022). World development indicators. https://datatopics.worldbank.org/world-development-indicators/

World Inequality Database. (2022). Database. https://wid.world/

Yenilmez, M. I. (2015). Economic and social consequences of population aging the dilemmas and opportunities in the twenty-first century. Applied Research in Quality of Life, 10(4), 735–752. https://doi.org/10.1007/s11482-014-9334-2

Zhang, X. P., & Cheng, X. M. (2009). Energy consumption, carbon emissions, and economic growth in China. Ecological Economics, 68(10), 2706–2712. https://doi.org/10.1016/j.ecolecon.2009.05.011

Zimková, E., Vidiečanová, M., & Cisková, P. (2021). Determinants of economic growth in the European Union countries. Statistika – Statistics and Economic Journal, 101(4), 357–369. https://doi.org/10.54694/stat.2021.16