Advanced Search
MyIDEAS: Login to save this article or follow this journal

Heterogeneity of Growth in the West Balkans and Emerging Europe: A Dynamic Panel Data Model Approach

Contents:

Author Info

  • Kosta Josifidis

    ()
    (Department of European Economics and Business, Faculty of Economics Subotica, University of Novi Sad, Serbia)

  • Radmila Dragutinović Mitrović

    ()
    (Faculty of Economics, University of Belgrade, Serbia)

  • Olgica Ivančev

    ()
    (Department of European Economics and Business, Faculty of Economics Subotica, University of Novi Sad, Serbia)

Abstract

This paper explores the heterogeneity of growth in the Western Balkan and Emerging European economies. For that purpose, growth determinants are estimated in the period 1997-2009 by dynamic panel data models. The chosen period provides a comparison for the model results with those estimated for the period up to 2007 in order to analyze changes caused by the global instability. According to the main findings of the paper, macroeconomic stabilisation and structural reforms still matter in determining economic growth, but foreign direct investments and economic integrations seem to have the most important role in stimulating growth in the observed countries. Moreover, significant positive effects of foreign direct investments and economic integrations produce differences in growth paths between Emerging European and Western Balkan economies. Sharp decrease of foreign inflows in 2008 determined contractions of growth rates firstly in Emerging European economies with subsequent spill-over on the Western Balkan economies during 2009. Consequently, in the period of global instability, differences between two groups of economies become even more obvious.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.panoeconomicus.rs/casopis/2012_2/02%20Kosta%20Josifidis.pdf
Download Restriction: no

Bibliographic Info

Article provided by Savez ekonomista Vojvodine, Novi Sad, Serbia in its journal Panoeconomicus.

Volume (Year): 59 (2012)
Issue (Month): 2 (May)
Pages: 157-183

as in new window
Handle: RePEc:voj:journl:v:59:y:2012:i:2:p:157-183

Contact details of provider:
Web page: http://www.panoeconomicus.rs/

Related research

Keywords: Growth; Emerging European economies; Western Balkan economies; Dynamic panel data model;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Robert J. Barro, 1989. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
  2. Babetskii, Ian & Campos, Nauro F, 2007. "Does Reform Work? An Econometric Examination of the Reform-Growth Puzzle," CEPR Discussion Papers 6215, C.E.P.R. Discussion Papers.
  3. Stanley Fischer & Ratna Sahay, 2000. "The Transition Economies After Ten Years," NBER Working Papers 7664, National Bureau of Economic Research, Inc.
  4. Christian Friedrich & Isabel Schnabel & Jeromin Zettelmeyer, 2010. "Financial Integration and Growth -Is Emerging Europe Different?," Working Papers 1013, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz, revised 17 Nov 2010.
  5. Matthieu Bussière & Marcel Fratzscher, 2008. "Financial Openness and Growth: Short-run Gain, Long-run Pain?," Review of International Economics, Wiley Blackwell, vol. 16(1), pages 69-95, 02.
  6. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
  7. Stanley Fischer & Ratna Sahay, 2000. "The Transition Economies After Ten Years," IMF Working Papers 00/30, International Monetary Fund.
  8. Caselli, Francesco & Esquivel, Gerardo & Lefort, Fernando, 1996. " Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics," Journal of Economic Growth, Springer, vol. 1(3), pages 363-89, September.
  9. Andrzej Rzońca & Piotr Ciżkowicz, 2003. "A comment on "The relationship between policies and growth in transition countries"," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(4), pages 743-748, December.
  10. Campos, Nauro F., 2001. "Will the Future Be Better Tomorrow? The Growth Prospects of Transition Economies Revisited," Journal of Comparative Economics, Elsevier, vol. 29(4), pages 663-676, December.
  11. Magnus Henrekson & Johan Torstensson & Rasha Torstensson,, . "Growth Effects of European Integration," Discussion Papers 96/1, University of Nottingham, CREDIT.
  12. Stephen Bond & Anke Hoeffler & Jonathan Temple, 2001. "GMM Estimation of Empirical Growth Models," Economics Papers 2001-W21, Economics Group, Nuffield College, University of Oxford.
  13. Beck, T.H.L. & Levine, R. & Loayza, N., 2000. "Financial intermediation and growth: Causality and causes," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3125519, Tilburg University.
  14. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
  15. Sebastian Edwards, 1997. "Openness, Productivity and Growth: What Do We Really Know?," NBER Working Papers 5978, National Bureau of Economic Research, Inc.
  16. Uwe B�wer & Alessandro Turrini, 2009. "EU accession: A road to fast-track convergence?," European Economy - Economic Papers 393, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  17. Marcelo Soto, 2009. "System GMM estimation with a small sample," Working Papers 395, Barcelona Graduate School of Economics.
  18. MERLEVEDE, Bruno, 2003. "Reform reversals and output growth in transition economies," Working Papers 2003013, University of Antwerp, Faculty of Applied Economics.
  19. Ratna Sahay & Jeromin Zettelmeyer & Eduardo Borensztein & Andrew Berg, 1999. "The Evolution of Output in Transition Economies," IMF Working Papers 99/73, International Monetary Fund.
  20. Zsolt Darvas, 2010. "Beyond the Crisis: Prospects for Emerging Europe," Working Papers 1005, Department of Mathematical Economics and Economic Analysis, Corvinus University of Budapest, revised 09 Mar 2011.
  21. Stephen Bond & Anke Hoeffler, 2001. "GMM Estimation of Empirical Growth Models," Economics Series Working Papers 2001-W21, University of Oxford, Department of Economics.
  22. Erik Berglof & Yevgeniya Korniyenko & Alexander Plekhanov & Jeromin Zettelmeyer, 2010. "Understanding the Crisis in Emerging Europe," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 6(6), pages 985-1008, September.
  23. Karsten Staehr, 2003. "Reforms and economic growth in transition economies: Complementarity, sequencing and speed," Macroeconomics 0303003, EconWPA.
  24. Fritz Breuss, . "Macroeconomic Effects of EU Enlargement for Old and New Members," WIFO Working Papers 143, WIFO.
  25. Urmas Varblane & Priit Vahter, 2005. "An Analysis Of The Economic Convergence Process In The Transition Countries," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 37, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  26. Ratna Sahay & Stanley Fischer & Carlos A. Végh Gramont, 1998. "From Transition to Market," IMF Working Papers 98/52, International Monetary Fund.
  27. Fischer, Stanley & Sahay, Ratna & Vegh, Carlos, 1998. "From transition to market: Evidence and growth prospects," MPRA Paper 20615, University Library of Munich, Germany.
  28. Elisabetta Falcetti & Tatiana Lysenko & Peter Sanfey, 2005. "Reforms and growth in transition: re-examining the evidence," Working Papers 90, European Bank for Reconstruction and Development, Office of the Chief Economist.
  29. Eduardo Borensztein & Jose De Gregorio & Jong-Wha Lee, 1995. "How Does Foreign Direct Investment Affect Economic Growth?," NBER Working Papers 5057, National Bureau of Economic Research, Inc.
  30. Pietro Garibaldi & Nada Mora & Ratna Sahay & Jeromin Zettelmeyer, 2001. "What Moves Capital to Transition Economies?," IMF Staff Papers, Palgrave Macmillan, vol. 48(4), pages 6.
  31. Ruben Atoyan, 2010. "Beyond the crisis: revisiting emerging Europe’s growth model," Financial Theory and Practice, Institute of Public Finance, vol. 34(4), pages 329-356.
  32. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
  33. Harald Badinger, 2005. "Growth Effects of Economic Integration: Evidence from the EU Member States," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 141(1), pages 50-78, April.
  34. de Melo, Martha & Denizer, Cevdet & Gelb, Alan, 1996. "From plan to market : patterns of transition," Policy Research Working Paper Series 1564, The World Bank.
  35. Bruno Merlevede & Koen Schoors, 2004. "Reform, FDI and Economic Growth: Tale of the Tortoise and the Hare," William Davidson Institute Working Papers Series wp730, William Davidson Institute at the University of Michigan.
  36. de Melo, Martha & Denizer, Cevdet & Gelb, Alan & Tenev, Stoyan, 1997. "Circumstance and choice : the role of initial conditions and policies in transition economies," Policy Research Working Paper Series 1866, The World Bank.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Jan Babecky & Tomas Havranek, 2013. "Structural Reforms and Growth in Transition: A Meta-Analysis," Working Papers IES 2013/14, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Oct 2013.
  2. Jan Babecky & Tomas Havranek, 2014. "Structural reforms and growth in transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 13-42, 01.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:voj:journl:v:59:y:2012:i:2:p:157-183. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ivana Horvat) The email address of this maintainer does not seem to be valid anymore. Please ask Ivana Horvat to update the entry or send us the correct address.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.