An Empirical Analysis of the Determinants of Economic Growth in the Western Balkans

Fetai Besnik Taip (), Mustafi Besime Fekri () and Fetai Ariana Besnik ()
Additional contact information
Fetai Besnik Taip: South East European University, Tetovo, the former Yugoslav Republic of Macedonia, Tetovo, FYR Macedonia
Fetai Ariana Besnik: South East European University, Tetovo, FYR Macedonia

Scientific Annals of Economics and Business, 2017, vol. 64, issue 2, 245-254

Abstract: The objective of this paper is to assess the main determinants and the policies that affect economic growth in the Western Balkan over the period 1994 to 2015. It employs techniques such as pooled OLS, fixed and random effects model, and Hausman-Taylor model with instrumental variables (IV). The study shows evidence of conditional convergence, indicating the need for an upward move in the steady state level. The results show that foreign direct investments, gross savings and domestic credit to the private sector have a positive effect on per capita growth. On the other hand, initial level of per capita growth, corruption, unemployment, and general government final consumption, have a negative relationship with per capita growth. The study also shows a puzzling result, that schooling is not a significant factor for growth in Western Balkans. The study also highlights the relevance of attracting more foreign direct investments and reduction in corruption.

Keywords: economic growth; binding constraints; Western Balkan; panel methods (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/saeb-2017-0016 (text/html)

Related works:
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:vrs:aicuec:v:64:y:2017:i:2:p:245-254:n:8

DOI: 10.1515/saeb-2017-0016

Access Statistics for this article

Scientific Annals of Economics and Business is currently edited by Ovidiu Stoica

More articles in Scientific Annals of Economics and Business from Sciendo
Bibliographic data for series maintained by Peter Golla ().