2011 | 7 | 1 | 12-15
Article title

Determinants of economic growth in South - East Europe: A panel data approach

Title variants
Languages of publication
The objective of this paper is to reveal the main determinants of the economic growth in South-East European countries. Real GDP growth rate represents economic growth in the analysis. We perform a panel data analysis for 7 countries with similar economic surroundings: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, Romania and Serbia. The observation period is 1995 - 2007. Empirical results indicate that Consumer price index, Current account/GDP, Exchange rate, General government balance, General government expenditure, Population, Large scale privatization and Price liberalization are some of the main factors on which Southeast European countries policy makers should focus in order to reach significant increase in economic growth.
Physical description
  • Faculty of Economics, University “Ss Cyril and Methodius,” Macedonia
  • Prague Development Center, Czech Republic
  • Barro, R., Sala-i-Martin, X., 2004. Economic growth, 2nd ed., The MIT Press.
  • Berg, A., Borensztein, E., Sahay, R., Zettelmeyer, J., 1999. “The evolution of output in transition economies: Explaining the differences,” IMF Working Paper, No99/73.
  • Borys, M., Polgar, E., Zlate, A., 2008. “Real convergence and the determinants of growth in EU candidate and potential candidate countries: A panel data approach,” Occasional Paper Series No.86, June 2008, European Central Bank.
  • Fischer, S., Sahay, R., 2004. “Transition economies: The role of institutions and initial conditions,” Festschrift in honor of Guillermo A. Calvo, April.
  • Fischer, S., Sahay, R., Vegh, C., 1996. “Stabilization and growth in transition economies: The early experience,” IMF Working Paper 96/31.
  • Gujarati, D., 2003. Basic econometrics, McGraw-Hill, New York.
  • Havrylyshyn, O., Wolf, T., 1999, “Determinants of growth in transition countries,” Finance and Development, Vol.36, No2, pp.12-15.
  • Havrylyshyn, O., Izvorski, I., van Rooden, R., 1998. “Recovery and growth in transition economies 1990-97: A stylized regression analysis,” IMF, European II Department, WP/98/141, September.
  • Mervar, A., 2002. “Ekonomski rast i zemlje u tranziciji,” Privredna kretanja i ekonomska politika, br.92/2002, pp.53-87.
  • Workie, M., 2005. “Determinants of growth and convergence in transitive economies in the 1990s: Empirical evidence from a panel data,” Prague Economic Papers 3/2005, pp.239-51.
Document Type
Publication order reference
YADDA identifier
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.