A multi-country non-linear dynamical model for the study of European growth based on technology and business services

In this paper we study a model for endogenous growth based on technology diffusion across European countries with respect to the major foreign partners. To that aim we disentangle the dynamics of such a problem by considering the single contribution to growth of each country, arising from every other individual country and for every strategic variable of the model. Among those, business services play a leading role for the link supported between innovations and production. Moreover technology growth itself fosters the off-shoring process of business services. Our calculations are an outcome of a program we settled for a continuous time estimation which is, in its nature, suitable for the study of the dynamic systems.

► We present a continuous time panel data growth model to study technology and business services. ► We perform a theoretic and econometric analysis on a nonlinear differential system. ► We study the countries’ eigen-system. ► We study the dynamic proprieties of the steady state.