Abstract for: European Union Economy System Dynamic Model Development
The formation of the EU is the one of the biggest political–economic events of the last 50 years. EU development process is still incomplete, with still evolving EU economic foundations and financial system. The aim of study is to develop EU economy functioning SD model, taking into account main economic indicator changes of EU countries since EU enlargement. Study result – author divides countries into several groups, based on their economic specifics. For these groups in the paper the first attempt to develop EU economy system dynamic model is undertaken. General scheme of EU economy SD model is shown, new EU member economic integration model is developed. Model is tested only for one EU country, Latvia. Results of paper show failure of mechanism of EU operations. The available mechanism contradicts EU principles; it doesn't promote the cohesion in EU, but quite opposite- leads to solving problems of well-developed EU countries at the expense of developing countries. In the given conditions the example of Latvia shows that there is no possibility to overcome the system crisis. These circumstances specify necessity of changes in EU internal migratory policy, in principles of developing countries’ support, in distribution of means, taking into account internal migration.