Traditionally, infrastructure has been considered an essential component of a country’s development. Therefore, European Union (EU) Member States (MS) invest heavily in this area. A lot of support for infrastructure development is also directed from the EU Structural Funds (SF). However, the results of previous studies do not fully reveal whether the development of infrastructure contributes to EU MS’ economic growth and what factors mediate this effect. Considering the limitations of previous studies, this article aims to examine whether the development of different types of infrastructure (transport, information and communication technologies (ICT), energy, and water and sanitation) contribute to economic growth and to assess whether government quality affects the growth outcomes of infrastructure. Empirical estimations are based on neoclassical specifications and cover 28 EU countries from 2000 to 2019. Estimates revealed that all types of infrastructure positively correlate with growth but not all correlations are significant. Only mobile cellular, which proxies ICT infrastructure, electricity production, which proxies energy infrastructure, and pipeline transport infrastructure significantly affect economic growth. Water and sanitation infrastructure development do not significantly contribute to EU MS’ economic growth. The institutional environment, i.e., less corruption, has a considerable positive effect on the growth outcomes of electricity production and pipeline transport infrastructure.

Development of innovation is recognised as a most powerful tool for the economic growth of countries. However, their effects on the quality of the environment are still being debated. To achieve sustainable development, eco-innovation becomes significant. EU countries expand eco-innovation activities, but it is not clear whether its development achieves the goal of economic growth and improves the quality of the environment. Purpose – to present how EU Member States perform in economic growth, environment and eco-innovation development and to evaluate eco-innovations impact on economic and environmental performance. Research methodology – the random effect regression was used for investigation relationship between eco-innovation, economic growth and environmental performance. Findings – eco-innovation development influences not only EU MS economic growth but also has a positive effect on environmental performance. Research limitations – eco-innovations development and economic growth can be interdepended, but this research investigates just one-way dependence. Granger causality test can be used for relationship assessment in the future. Practical implications – the research results can be used for both the development of environmental policy and the policy of business support for eco-innovation implementation. Originality/Value – study results confirmed previous assessment results on eco-innovation and economic growth and provided new knowledge of their effect on environmental performance.

Core infrastructure, which covers transportation, information and communication (ICT), energy, water and sanitation systems, plays a significant role in economic growth. The development of core infrastructure – one of the European Union (EU) Cohesion Policy (CP) priorities – is heavily funded. However, it remains unclear whether these investments achieve the main aim, i.e. contribute to economic growth and convergence between EU countries and especially regions. A theoretical model addressing the identified issues is needed to assess the impact of infrastructure on economic growth and convergence comprehensively and as accurately as possible. To reach this aim, first, we have disclosed the definition of infrastructure and its structure. Also, we discussed different approaches to the relationship between infrastructure and economic growth. We developed a theoretical model for evaluating infrastructure impact on economic growth and convergence. Moreover, based on the neoclassical approach, we specified an econometric model that includes indicators of different types of infrastructure and assessed growth and convergence outcomes of infrastructure development. Even though we find that infrastructure positively affects growth and convergence, the estimated impact is not statistically significant except for some types of ICT and transport infrastructure. Keyword : infrastructure, transport infrastructure, energy infrastructure, telecommunication infrastructure, water and sanitation infrastructure, economic growth, convergence

In this research, we investigate the impact of human capital on labour productivity in European Union member states using panel data analysis. Results of the paper are estimated using the Pooled ordinary least squares (OLS) and Fixed effects model (FEM). The results show that human capital is positively significant in improving the growth of labour productivity in the EU. Our estimates also suggest that the impact occurs after three times lags in case of education expenditure.

The paper contributes to the existing literature on the EU’s Cohesion Policy outcomes by extending the conditional beta-convergence model with a 3-way multiplicative term to examine the mediating effects of the Cohesion Policy, institutional quality, and their interaction on regional convergence. The empirical analysis based on conditional slope coefficients and conditional standard errors provides evidence that both the mediating factors under consideration contribute positively to boosting regional convergence in the EU at the NUTS 2 and 3 disaggregation level, but with much bigger success over the 2007–2013 programming period compared to the previous one. Moreover, Cohesion Policy and institutional quality act as substituting rather than complementary mediating factors.