Using a generalized production function approach and insights from empirical research on the determinants of growth, this paper assesses the relative importance of specific factors in explaining differences in the levels of per capita GDP. Emphasis is placed on education, physical capital accumulation, the share of the public sector in economic activity and the outward orientation of economies. Education, among other things, is connected with the ability of countries to take advantage of technology transfer channels. Panel data estimation techniques are used to obtain empirical results for the EU-15 countries, and economic policy recommendations are evaluated accordingly.
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