IDEAS home Printed from https://ideas.repec.org/a/rbs/ijfbss/v9y2020i1p36-46.html
   My bibliography  Save this article

Evaluation of Economic Indicators for Western Balkans Countries: Policy Recommendations for the Financial and Economic Growth

Author

Listed:
  • Esat Durguti

    (Department of Finance, Banking and Accounting, University of Mitrovica, Prishtina, Kosovo)

  • Emine Gashi

    (Finance Department, College for International Management, Prishtina, Kosovo)

  • Filloreta Kunoviku-Demiri

    (Department of Business and Management, University of Mitrovica, Mitrovica, Kosovo)

  • Milaim Mehmeti

    (Department of Finance, Banking and Accounting, University of Mitrovica, Mitrovica, Kosovo)

Abstract

The purpose of this paper is to find out if selected determinants have any effect on the economic growth rate using the strong balanced panel data for the Western Balkan countries for the period 2001-2017, and the data used are on an annual basis, which intotal there are 102 observation periods. For the realization of the paper, secondary data and an advanced dynamic approach were used, such as pooled OLS methods, fixed and random effects model, to test economic growth rate as dependent variable, and explanatory variables such as working remittances to GDP, exports to GDP, imports to GDP, foreign direct investment to GDP and inflation rate.From the generated outputs, it is true to say that working remittances to GDP, exports to GDP, and imports to GDP have an effect that influences economic growth, respectively GDP growth.Even though foreign direct investment to GDP and inflation rate does not have a significant effect on economic growth, respectively GDP growth. The recommendation from this study for policymakers and other researchers would be an added value to analyze with empirical approaches.

Suggested Citation

  • Esat Durguti & Emine Gashi & Filloreta Kunoviku-Demiri & Milaim Mehmeti, 2020. "Evaluation of Economic Indicators for Western Balkans Countries: Policy Recommendations for the Financial and Economic Growth," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 9(1), pages 36-46, January.
    • Handle: RePEc:rbs:ijfbss:v:9:y:2020:i:1:p:36-46
    as

    Download full text from publisher

    File URL: https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/652/523
    Download Restriction: no
    File URL: https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/652
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    2. Charles Nhemachena & Greenwell Matchaya & Charity R. Nhemachena & Selma Karuaihe & Binganidzo Muchara & Sibusiso Nhlengethwa, 2018. "Measuring Baseline Agriculture-Related Sustainable Development Goals Index for Southern Africa," Sustainability, MDPI, vol. 10(3), pages 1-16, March.
    3. Ralph Chami & Connel Fullenkamp & Samir Jahjah, 2005. "Are Immigrant Remittance Flows a Source of Capital for Development?," IMF Staff Papers, Palgrave Macmillan, vol. 52(1), pages 55-81, April.
    4. Nhemachena, Charles & Matchaya, Greenwell & Nhemachena, C. R. & Karuaihe, S. & Muchara, B. & Nhlengethwa, Sibusiso, 2018. "Measuring baseline agriculture-related sustainable development goals index for southern Africa," Papers published in Journals (Open Access), International Water Management Institute, pages 10(3):1-16..
    5. Anonymous, 1956. "Western European Union," International Organization, Cambridge University Press, vol. 10(1), pages 223-225, February.
    6. Fullerton, Thomas M., Jr. & Kababie, Kababie & Boehmer, Charles R., 2012. "International trade and economic growth in Mexico," MPRA Paper 42991, University Library of Munich, Germany.
    7. Anonymous, 1956. "Western European Union," International Organization, Cambridge University Press, vol. 10(3), pages 510-514, August.
    8. Dzenita Siljak & Sándor Gyula Nagy, 2018. "The Effects of the Crisis on the Convergence Process of the Western Balkan Countries towards the European Union," Society and Economy, Akadémiai Kiadó, Hungary, vol. 40(1), pages 105-124, March.
    9. Hans‐Peter Lankes & A. J. Venables, 1996. "Foreign direct investment in economic transition: the changing pattern of investments," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(2), pages 331-347, October.
    10. Leshoro, Temitope L A, 2017. "An empirical analysis of disaggregated government expenditure and economic growth in South Africa," Working Papers 22644, University of South Africa, Department of Economics.
    11. Bevan, Alan A. & Estrin, Saul, 2004. "The determinants of foreign direct investment into European transition economies," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 775-787, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hajer Habib, 2023. "Remittances and Labor Supply: Evidence from Tunisia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1870-1899, June.
    2. Manal Ammari & Mohammed Chentouf & Mohammed Ammari & Laïla Ben Allal, 2022. "Assessing National Progress in Achieving the Sustainable Development Goals: A Case Study of Morocco," Sustainability, MDPI, vol. 14(23), pages 1-29, November.
    3. Rahmije Topxhiu & Florentina Xhelili, 2016. "The Role Of Migrant Workers Remittances In Fostering Economic Growth: The Kosovo Experience," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 19(61), pages 165-192, September.
    4. Pamela Efua Ofori & Daryna Grechyna & Muhammad Shafiullah, 2021. "Remittances, natural resource rent and economic growth in Sub-Saharan Africa," Cogent Economics & Finance, Taylor & Francis Journals, vol. 9(1), pages 1979305-197, January.
    5. Mohammad Salahuddin & Jeff Gow, 2015. "The relationship between economic growth and remittances in the presence of cross-sectional dependence," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(1), pages 207-221, January-M.
    6. Shin-Cheng Yeh & Haw-Jeng Chiou & Ai-Wei Wu & Ho-Ching Lee & Homer C. Wu, 2019. "Diverged Preferences towards Sustainable Development Goals? A Comparison between Academia and the Communication Industry," IJERPH, MDPI, vol. 16(22), pages 1-21, November.
    7. D'artis Kancs & Pavel Ciaian, 2010. "The Impact Of The Eu Blue Card Policy On Economic Growth In The African Sending Countries," South African Journal of Economics, Economic Society of South Africa, vol. 78(3), pages 225-247, September.
    8. Koray Altintas & Ozalp Vayvay & Sinan Apak & Emine Cobanoglu, 2020. "An Extended GRA Method Integrated with Fuzzy AHP to Construct a Multidimensional Index for Ranking Overall Energy Sustainability Performances," Sustainability, MDPI, vol. 12(4), pages 1-21, February.
    9. Bitzenis, Aristidis & Tsitouras, Antonis & Vlachos, Vasileios A., 2009. "Decisive FDI obstacles as an explanatory reason for limited FDI inflows in an EMU member state: The case of Greece," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(4), pages 691-704, August.
    10. Jude Eggoh & Chrysost Bangake & Gervasio Semedo, 2019. "Do remittances spur economic growth? Evidence from developing countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 28(4), pages 391-418, May.
    11. Minjie Li & Jian Wang & Yihui Chen, 2019. "Evaluation and Influencing Factors of Sustainable Development Capability of Agriculture in Countries along the Belt and Road Route," Sustainability, MDPI, vol. 11(7), pages 1-28, April.
    12. Miguel D. Ramirez & Hari Sharma, 2009. "Remittances and Growth in Latin America: A Panel Unit Root and Panel Cointegration Analysis," Estudios Economicos de Desarrollo Internacional, Euro-American Association of Economic Development, vol. 9(1).
    13. Rakotoarimanana Zy Misa Harivelo & Rakotoarimanana Zy Harifidy, 2022. "A Review of Environmental Protection and Sustainable Development in Madagascar," J, MDPI, vol. 5(4), pages 1-20, November.
    14. Hemmer, Hans-Rimbert & Krüger, Ralf & Seith, Jennifer, 2006. "Ausländische Direktinvestitionen: Flankierende Maßnahmen des Staates," Discussion Papers in Development Economics 36, Justus Liebig University Giessen, Institute for Development Economics.
    15. Masahiro Tokunaga & Ichiro Iwasaki, 2017. "The Determinants of Foreign Direct Investment in Transition Economies: A Meta-analysis," The World Economy, Wiley Blackwell, vol. 40(12), pages 2771-2831, December.
    16. Sami Ben Mim & Fatma Mabrouk, 2011. "Remittances and economic growth: what channels of transmission? (In French)," Cahiers du GREThA (2007-2019) 2011-28, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    17. Charles Samuel Mutengwa & Pearson Mnkeni & Aleck Kondwakwenda, 2023. "Climate-Smart Agriculture and Food Security in Southern Africa: A Review of the Vulnerability of Smallholder Agriculture and Food Security to Climate Change," Sustainability, MDPI, vol. 15(4), pages 1-13, February.
    18. Temitayo Olumide Olaniyan, 2019. "Interactive Effects of Remittances and Financial Sector Development on Economic Growth in Nigeria," Remittances Review, Remittances Review, vol. 4(1), pages 19-39, May.
    19. Niaz Hussain Ghumro & Mohd Zaini Abd Karim, 2017. "The Role Of Remittances In The Stability Of Money Demand In Pakistan: A Cointegration Analysis," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 62(213), pages 45-66, April - J.
    20. Gazi Mainul Hassan & Shamim Shakur, 2017. "Nonlinear Effects of Remittances on Per Capita GDP Growth in Bangladesh," Economies, MDPI, vol. 5(3), pages 1-11, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijfbss:v:9:y:2020:i:1:p:36-46. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hasan Dincer (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.