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Tausch, Arno
Heshmati, Almas
Bajalan, Chemen S.J.
Year of Publication: 
Series/Report no.: 
IZA Discussion Papers No. 3198
Starting from Professor Kornai's assertion about the necessity to focus on the long-term perspectives of the transformation process, we analyze in this paper the Lisbon performance of the countries of the European Union from such a long-term, structural perspective. We present in a simple form the mathematical methods used in this essay. Then, we analyze Lisbon indicator performance by factor analytical means. We conclude that only a Schumpeterian vision of capitalism as a process of creative destruction - or rather - destructive creation can explain these contradictions, which we empirically reveal in this analysis, and which beset the Lisbon process from the very beginning. Our factor analysis tells us that a majority of the kernel Lisbon indicators go indeed hand in hand with high comparative price levels; high freight transport; high greenhouse gas emissions; low business investment rates; and low youth educational attainment rates. We conclude that in reality we are facing four underlying and contradictory processes including a Lisbon productivity factor; high eco-social exclusion; the employment performance; and the neo-liberal European model.
Index numbers and aggregation
cross-sectional models
spatial models
economic integration
regional economic activity
international factor movements
international business
international relations
international political economy
Document Type: 
Working Paper

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