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What Drives Economic Growth in Some CEE Countries?

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  • Simionescu Mihaela

    (Institute for Economic Forecasting of the Romanian Academy, Centre for Migration Studies in Prague Business School)

Abstract

Considering the potential factors that might generate economic growth, a target for any economy, this paper identified some determinants of economic growth in the countries from Central and Eastern Europe (CEE countries) that are member states of the European Union. The foreign direct investment was the most important determinant of economic growth in most of the countries (Bulgaria, Slovenia, Estonia, Hungary, Romania, Poland, Latvia, Lithuania) in the period 2003-2016, according to Bayesian bridge regressions. The indicators related to the level and the quality of labour resources proved to be insignificant in explaining the economic growth in these countries. Moreover, in Croatia, Estonia, Latvia, Lithuania, and Poland, the government expenditure on education had a negative effect on economic growth.

Suggested Citation

  • Simionescu Mihaela, 2018. "What Drives Economic Growth in Some CEE Countries?," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 28(1), pages 46-56, March.
  • Handle: RePEc:vrs:suvges:v:28:y:2018:i:1:p:46-56:n:4
    DOI: 10.2478/sues-2018-0004
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    References listed on IDEAS

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    More about this item

    Keywords

    economic growth; foreign direct investment; Bayesian ridge regression; CEE countries;
    All these keywords.

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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