Growth, Structural Dynamics and EU Integration in the Context of the Lisbon Agenda

The long term dynamics of growth and structural change in open economies are discussed where integration aspects are included. Taking a closer look at basic economic dynamics, namely developments in terms of sustainable growth and international interdependencies, the theoretical section emphasizes international links on the demand side as well as (within a theoretical innovation) on the supply side. The latter basically means the production function where a broader range of inputs, including technology effects and aspects of foreign direct investment are considered. For the first time, the distinction between efficient international specialization and golden efficient international specialization is discussed here. With respect to the EU, the Lisbon Agenda is discussed and various policy conclusions are drawn. The Euro area has considerable strong points in terms of a high potential for sustained growth; at the same time, one cannot overlook that aging, and partly weak prudential supervision represent serious challenges. The EU has achieved some increase in the growth of productivity and output due to its modernization efforts in the field of telecommunications and information as well as communication technology. Major challenges for policymakers are identified, including the field of green ICT, which could become a common field of cooperation between the EU and China.