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The Impact of Infrastructure Development on the Economic Growth of the Countries in the Western Balkans and their EU Future

Author

Listed:
  • Danijela Jaćimović
  • Milena Lipovina-Božović
  • Bojan Pejović
  • Sunčica Vuković

Abstract

The infrastructure investment could strongly influence the economic growth in the Western Balkans countries and contribute to improved regional cooperation and reconciliation and to faster integration into the EU. However, it is essential that public investments in infrastructure are properly financed and managed. To measure the impact of infrastructure indicators on economic growth, panel regression analysis was used for the period 2000-2021, in six Western Balkan countries. The paper addresses the important question of how to intensify investments in infrastructure to achieve sustainable growth in the Western Balkans. The obtained results confirm the earlier findings about the significant impact of energy, ITC, and road infrastructure on economic growth in the Western Balkans.

Suggested Citation

  • Danijela Jaćimović & Milena Lipovina-Božović & Bojan Pejović & Sunčica Vuković, 2025. "The Impact of Infrastructure Development on the Economic Growth of the Countries in the Western Balkans and their EU Future," Prague Economic Papers, Prague University of Economics and Business, vol. 2025(1), pages 45-77.
    • Handle: RePEc:prg:jnlpep:v:2025:y:2025:i:1:id:884:p:45-77
    DOI: 10.18267/j.pep.884
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    References listed on IDEAS

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    1. BADALYAN, Gohar & HERZFELD, Thomas & RAJCANIOVA, Miroslava, 2014. "Transport Infrastructure And Economic Growth: Panel Data Approach For Armenia, Georgia And Turkey," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 17(2), pages 1-10, October.
    2. Fosu, Prince, 2019. "The Determinants of Economic Growth: The Role of Infrastructure," MPRA Paper 93101, University Library of Munich, Germany.
    3. Alege, Philip & Ogundipe, Adeyemi, 2013. "Sustaining Economic Development of West African Countries: A System GMM Panel Approach," MPRA Paper 51702, University Library of Munich, Germany.
    4. Danijela Jaćimović & Joel I. Deichmann & Kong Tianping, 2023. "The Western Balkans and Geopolitics: Leveraging the European Union and China," Journal of Balkan and Near Eastern Studies, Taylor & Francis Journals, vol. 25(4), pages 626-643, July.
    5. Atsushi Iimi, 2011. "Effects Of Improving Infrastructure Quality On Business Costs: Evidence From Firm‐Level Data In Eastern Europe And Central Asia," The Developing Economies, Institute of Developing Economies, vol. 49(2), pages 121-147, June.
    6. Tomasz Komornicki & Sławomir Goliszek, 2023. "New Transport Infrastructure and Regional Development of Central and Eastern Europe," Sustainability, MDPI, vol. 15(6), pages 1-24, March.
    7. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
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    More about this item

    Keywords

    infrastructure investments; economic growth; Western Balkans; resilient economies;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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