Raiser, MartinGill, Indermit S.2012-04-272012-04-272012-04-18978-0-8213-8965-210.1596/978-0-8213-8965-2https://hdl.handle.net/10986/6016Europe's growth will have to be golden in yet another sense. Economic prosperity has brought to Europeans the gift of longer lives, and the continent's population has aged a lot over the last five decades. Over the next five, it will age even more by 2060; almost a third of Europeans will be older than 65 years. Europe will have to rebuild its structures to make fuller use of the energies and experience of its more mature population's people in their golden years. These desires and developments already make the European growth model distinct. Keeping to the discipline of the golden rule would make it distinguished. This report shows how Europeans have organized the six principal economic activities trade, finance, enterprise, innovation, labor, and government in unique ways. But policies in parts of Europe do not recognize the imperatives of demographic maturity and clash with growth's golden rule. Conforming growth across the continent to Europe's ideals and the iron laws of economics will require difficult decisions. This report was written to inform them. Its findings the changes needed to make trade and finance will not be as hard as those to improve enterprise and innovation; these in turn are not as arduous and urgent as the changes needed to restructure labor and government. Its message the remedies are not out of reach for a part of the world that has proven itself both intrepid and inclusive.CC BY 3.0 IGOAVERAGE INCOMEBASE YEARCAPITAL ACCUMULATIONCAPITAL INVESTMENTSCDCOMMON TRADE POLICYCONVERGENCE HYPOTHESISCONVERGENCE PROCESSCRITICAL SURVEYCROSS COUNTRYDIFFERENCES IN INCOMEECOLOGYECONOMIC COMMUNITYECONOMIC CONVERGENCEECONOMIC GROWTHECONOMIC INTEGRATIONECONOMIC REFORMECONOMIC RESEARCHECONOMIC WELFAREECONOMICSEMPIRICAL ANALYSISEMPIRICAL EVIDENCEEMPIRICAL LITERATUREEMPIRICAL RESEARCHEMPIRICAL STUDIESEMPLOYMENTENDOGENOUS GROWTHENVIRONMENTAL PERFORMANCEEXCHANGE RATEEXCHANGE RATE FLUCTUATIONSEXCHANGE RATESEXPLANATORY FACTORSEXTERNALITIESFINANCIAL CRISESFIXED COSTSFOREIGN INVESTMENTFOREIGN TRADEFOREST MANAGEMENTFREE TRADEFREE TRADE AREAGDPGDP PER CAPITAGROSS FIXED CAPITAL FORMATIONGROWTH LITERATUREGROWTH MODELGROWTH MODELSGROWTH PERFORMANCEGROWTH THEORYHUMAN CAPITALIMPORTING COUNTRYINCOMEINCOME CONVERGENCEINCOME DISTRIBUTIONINCOME DISTRIBUTION DATAINCOME DISTRIBUTIONSINCOME GAPSINCOME INEQUALITYINCOME LEVELSINCOMESINCREASING RETURNSINDUSTRIALIZED COUNTRIESINFANT INDUSTRY ARGUMENTINTEGRATING AREAINTEREST RATESINTERMEDIATE GOODSINTERNAL TRADEINTERNATIONAL TRADEINTERNATIONAL TRADE POLICYINVESTMENT INFLOWSKNOWLEDGE SPILLOVERLABOR PRODUCTIVITYLABOUR PRODUCTIVITYLEGAL STATUSLONG RUNMACROECONOMIC POLICIESMACROECONOMIC STABILITYMARGINAL PRODUCTMEMBER COUNTRIESMEMBER STATESMONETARY UNIONNATIONAL POLICIESNATIONAL] POLICIESNEOCLASSICAL GROWTHNEOCLASSICAL GROWTH MODELNEOCLASSICAL GROWTH THEORYOPEN ECONOMIESPER CAPITA GROWTHPER CAPITA INCOMEPOOR COUNTRIESPOSITIVE EXTERNALITIESPOVERTY REDUCTIONPREFERENTIAL TRADINGPREFERENTIAL TRADING AGREEMENTSPRODUCTIVITYPRODUCTIVITY GROWTHPUBLIC CAPITALPURCHASING POWERRETURNS TO SCALERISK PREMIUMSTABILIZATION POLICIESSTRUCTURAL CHANGETECHNICAL PROGRESSTECHNOLOGICAL INNOVATIONTECHNOLOGY SPILLOVERSTECHNOLOGY TRANSFERTRADE INTEGRATIONTRADE LIBERALIZATIONTRADE OPENNESSTRADE THEORYTRANSACTION COSTSTRANSITION ECONOMIESTRANSITION PROCESSTRANSPORT COSTSWATER PRICINGWEALTHWELFARE EFFECTSWELFARE GAINSEUROPEAN INTEGRATIONEUROPEAN UNIONCONVERGENCE (ECONOMICS)INCOME LEVELSEUROPEAN UNION MEMBERSHIPSTANDARD OF LIVINGREGIONAL INTEGRATIONTECHNOLOGICAL CHANGEFOREIGN DIRECT INVESTMENTSMACROECONOMIC STABILITYCOMPETITION POLICYHUMAN CAPITALREGIONAL POLICYINCOME LEVELSTECHNOLOGICAL CHANGEFOREIGN DIRECT INVESTMENTSMACROECONOMIC STABILITYCOMPETITION POLICYWorld Bank10.1596/978-0-8213-8965-2