O52 - Economywide Country Studies: EuropeReturn

The aim of this paper is to investigate the relationship between unemployment and economic growth in the European Union and in individual European countries. This allows to determine what the effect on the unemployment rate will be when there is a change in output. The European Union (28 countries) quarterly data used is for the period from 2000Q1 to 2017Q3. Regression analysis, co-integration analysis and a vector error correction model have also been used. The relationship between the unemployment rate and economic growth in the EU-28 for the period examined in this study is less pronounced in comparison with the other countries. A negative relationship between economic growth and a change in the unemployment rate is obtained for all the countries in the European Union (28 countries). During each stage of the period studied, the effect of hysteresis on the labour market grew. The results from the statistical analysis show that the data on economic growth and the change in the rate of unemployment in the EU-28 are co-integrated. The validity of Okun's Law for the economy of the European Union is confirmed although during the period studied the European economy went through several phases of the economic cycle.

In recent years, it is not only a researcher, or a developer, who is important for technology innovation, but increasingly important there have become the micro and macro environment of the institution/company. Since, many times, technology innovation requires cooperation within the business microenvironment and supportive legal, political, economic, social or environmental factors. As analogies in Japan, USA, India, or China, also the European Community has to respond adequately to this trend through supportive legislation, management, infrastructure and cooperation. The key research question of this analysis is, how big is the difference in technological innovation/patenting between developed and developing countries of the EU and why? Also, the selected issues and challenges of technological innovation and management create the input into this systemic study of technology patenting in the EU countries since 1980.

The paper deals with the state and development of knowledge economy in Central and Eastern European (CEE) countries and its contribution to national competitiveness. The main goal is to discuss whether a relationship between the level of knowledge economy and macroeconomic competitiveness can be found. This is evaluated and confirmed by correlation between the Knowledge Economy Index and the Global Competitiveness Index among the EU member states. The same procedure of evaluation is conducted for Central and Eastern European member countries, confirming the relationship, though giving a lower correlation coefficient. Considering the fact that the CEE region consists of less developed former socialist countries, the lower correlation coefficient might point out to a lower knowledge base of its macroeconomic competitiveness. A specific attention is paid to the three most developed knowledge economies in the CEE region - the Czech Republic, Estonia and Slovenia. The case of Estonia, which has been a relatively poorer country, doubts the assumption that rich countries invest in the development of knowledge economy the most.

The European Union and the United States of America present the world's largest exporter and importer of goods, services and capital. The idea of increasing foreign trade between them based on the implementation of the lowest degree of economic integration, a free trade area, is not new. A proposal was made in the 1990s to create a Transatlantic Free Trade Area between the EU and member countries of the North American Free Trade Agreement, which has not been successfully implemented. Nowadays, it is getting back to the forefront of interest among not only politicians but also economists. Whether political or economic pressures are behind this step, it is important to understand the general principle of the functioning of the free trade area. The aim of this paper is to illustrate the basic characteristics of the free trade area on the example of the EU and the US.