The binding constraint on growth in less developed Western Balkan countries

Hubert Gabrisch

MPRA Paper from University Library of Munich, Germany

Abstract: Abstract The study applies an adjusted growth diagnostic approach to identify the actual binding constraint on financing growth in the West Balkan countries. This group of economies includes combined structural and systemic transformation problems. The results of the analysis indicate that the binding constraint on credit and investment growth in the region is the high and still increasing share of non-performing loans primarily in the private household sector due to policy failures. The analysis is performed in comparison with a group of advanced transition economies. Single-country and panel regressions indicate that demand side factors do not play a constraining role in the West Balkan countries but in the advanced transition economies.

Keywords: Growth diagnostics; financing; non-performing loans; Western Balkans (search for similar items in EconPapers)
JEL-codes: G21 G28 O1 O16 (search for similar items in EconPapers)
Date: 2014-11-17
New Economics Papers: this item is included in nep-tra
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https://mpra.ub.uni-muenchen.de/60018/1/MPRA_paper_59993.PDF original version (application/pdf)
https://mpra.ub.uni-muenchen.de/60018/6/MPRA_paper_59993.PDF original version (application/pdf)

Related works:
Working Paper: The binding constraint on growth in less developed Western Balkan countries (2014)
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