Foreign and domestic growth drivers in Eastern Europe

Enzo Weber

Economic Systems, 2011, vol. 35, issue 4, 512-522

Abstract: This 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, a 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.

Keywords: Eastern Europe; Growth; Exports; Investment; Identification (search for similar items in EconPapers)
JEL-codes: C32 O11 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0939362511000434
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Foreign and Domestic Growth Drivers in Eastern Europe (2010)
Working Paper: Foreign and Domestic Growth Drivers in Eastern Europe (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:35:y:2011:i:4:p:512-522

DOI: 10.1016/j.ecosys.2011.02.001

Access Statistics for this article

Economic Systems is currently edited by R. Frensch

More articles in Economic Systems from Elsevier Contact information at EDIRC.
Bibliographic data for series maintained by Catherine Liu ().