Foreign and Domestic Growth Drivers in Eastern Europe
AbstractThis paper analyses the growth effects of capital formation, exports and FDI as major drivers of economic development in Eastern Europe. The fundamental innovations are identified by empirically and theoretically motivated short- and long-run restrictions in structural cointegrated vector autoregressions. Impulse responses and variance decompositions reveal quite different growth effects in various Eastern European countries. Generally, strong reliance on exports goes along with higher GDP, and FDI bears substantial potential for fostering economic growth. It is shown that the recent worldwide recession clearly hit Eastern Europe through the export channel, whereas the recovery is mainly supported by positive demand shocks.
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Bibliographic InfoPaper provided by University of Regensburg, Department of Economics in its series University of Regensburg Working Papers in Business, Economics and Management Information Systems with number 444.
Date of creation: 22 Jul 2010
Date of revision:
Eastern Europe; Growth; Exports; Investment; Identification;
Other versions of this item:
- Weber, Enzo, 2011. "Foreign and domestic growth drivers in Eastern Europe," Economic Systems, Elsevier, vol. 35(4), pages 512-522.
- Enzo Weber, 2010. "Foreign and Domestic Growth Drivers in Eastern Europe," Working Papers 286, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-31 (All new papers)
- NEP-EEC-2010-07-31 (European Economics)
- NEP-FDG-2010-07-31 (Financial Development & Growth)
- NEP-TRA-2010-07-31 (Transition Economics)
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.:
- Marcella Nicolini & Laura Resmini, 2010. "FDI spillovers in new EU member states," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(3), pages 487-511, 07.
- Iwasaki, Ichiro & Tokunaga, Masahiro, 2013. "Macroecnomic Impacts of FDI in Transition Economies: A Meta-Study," RRC Working Paper Series 39, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
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