A New Perspective of Investment Modelling at the European Union Level

Abstract

The study that represents the subject of this paper follows the analysis of the investment function and the influencing factors at the European Union level. The research has, as a starting point, the hypothesis that there is a negative relationship between the European Union investments and tax rates. For verifying this hypothesis, the structural equation modeling is used (SEM), and the same technique is applied in the second part of the research, which will track the development of the investments’ model at the European Union level. The results will highlight the relationships that are established between specific variables that characterize the volume of investments.

Keywords

• investment
• interest rate
• taxes
• gross domestic product
• European Union