IDEAS home Printed from https://ideas.repec.org/a/beo/journl/v68y2023i238p59-86.html
   My bibliography  Save this article

Drivers Of Gdp Growth: Evidence From Selected European Countries

Author

Listed:
  • Milutin Ješić

Abstract

This empirical study analyses the potential determinants of GDP growth in selected European countries using data for 19 countries from Central, Eastern, and South-Eastern Europe for the period 2014 to 2020. The influence of possible drivers of economic growth are investigated by employing dynamic panel data modelling, specifically the system GMM method. The study’s findings reveal that fiscal responsibility, initial development, the inflation rate, and EU membership are the main GDP growth drivers. In addition, we control for the institutional determinants of economic growth and the role of R&D. These results provide further support for the hypothesis that macroeconomic policies conducted in a responsible and sustainable way can significantly improve countries’ growth perspectives. These findings may help us to understand that the trinity of policies, institutions, and technology is a conditio sine qua non of economic growth.

Suggested Citation

  • Milutin Ješić, 2023. "Drivers Of Gdp Growth: Evidence From Selected European Countries," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 68(238), pages 59-86, July – Se.
    • Handle: RePEc:beo:journl:v:68:y:2023:i:238:p:59-86
    as

    Download full text from publisher

    File URL: http://www.ekof.bg.ac.rs/wp-content/uploads/2015/12/238-03.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert J Barro, 1999. "Determinants of Economic Growth: Implications of the Global Evidence for Chile," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 36(107), pages 443-478.
    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. Konstantin Yanovsky & Ilia Zatcovetzky & Sergei Zhavoronkov & Ekaterina Reva, 2013. "Modern Anti-Capitalistic Ideologies," Working Papers 0059, Gaidar Institute for Economic Policy, revised 2013.
    2. Jorge Marshall R., 2002. "El Camino de las Reformas," Notas de Investigación Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 5(1), pages 77-82, April.
    3. Emiliano Toni & Pablo Paniagua & Patricio 'Ordenes, 2024. "Policy Changes and Growth Slowdown: Assessing the Lost Decade of the Latin American Miracle," Papers 2407.02003, arXiv.org.
    4. Ludmila Fadejeva & Aleksejs Melihovs, 2010. "Measuring Total Factor Productivity and Variable Factor Utilization," Eastern European Economics, Taylor & Francis Journals, vol. 48(5), pages 63-101, September.
    5. Tarun Bose & Jannatul Bristy, 2017. "Are Countries Participating into Regional Integration Performing Better in Growth and Liberalization Than Non-Participators? A Study on European Countries," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(2), pages 171-171, January.
    6. Balcilar, Mehmet & Gupta, Rangan & Lee, Chien-Chiang & Olasehinde-Williams, Godwin, 2018. "The synergistic effect of insurance and banking sector activities on economic growth in Africa," Economic Systems, Elsevier, vol. 42(4), pages 637-648.
    7. Wanniarachchi, Sasindu Lakruwan, 2020. "The Nexus among External Debt and Economic Growth: Evidence from South Asia," OSF Preprints ghfdb, Center for Open Science.
    8. Klaus Schmidt-Hebbel, 2006. "Chile's Economic Growth," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 43(127), pages 5-48.
    9. Pablo Henr'iquez & Jorge Sabat & Jos'e Patr`icio Sullivan, 2021. "Politicians' Willingness to Agree: Evidence from the interactions in Twitter of Chilean Deputies," Papers 2106.09163, arXiv.org, revised Sep 2021.
    10. Boachie, Micheal Kofi, 2015. "Effect of health on economic growth in Ghana:An application of ARDL bounds test to cointegration," MPRA Paper 67201, University Library of Munich, Germany.
    11. Ghosh, Saibal, 2009. "Does Financial Outreach Engender Economic Growth? Evidence from Indian States," MPRA Paper 32072, University Library of Munich, Germany.
    12. Themba G Chirwa & NM Odhiambo, 2019. "An Empirical Test Of Exogenous Growth Models: Evidence From Three Southern African Countries," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 64(220), pages 7-38, January –.
    13. Mduduzi Biyase & September Rooderick, 2017. "Determinants of Growth in SADC Countries: A Fixed Effect Vector Decomposition Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 746-751.
    14. Francisco Gallego & Harald Beyer, 2013. "Education and Productivity: Some New Evidence and Implications for Chile," Working Papers ClioLab 16, EH Clio Lab. Instituto de Economía. Pontificia Universidad Católica de Chile.
    15. Javier Cossío Medinacelli & Marco Antonio Laguna Vargas & Dennise Martin Alarcón & Pablo Mendieta Ossio & Raúl Mendoza Patiño & Martín Palmero Pantoja & Hugo Rodríguez Gonzales, 2008. "La inflación y políticas del Banco Central de Bolivia," Revista de Análisis del BCB, Banco Central de Bolivia, vol. 10(1), pages 73-109, December.
    16. Sebastian George, ENE & Danut, CHILAREZ, 2015. "The Influence Of Government Spending, Financial, Monetary And Fiscal Policies On The Gdp. Comparative Analysis Romania – Lithuania," Management Strategies Journal, Constantin Brancoveanu University, vol. 29(3), pages 6-15.
    17. Chirwa, Themba G & Odhiambo, Nicholas M, 2016. "The drivers of real sector growth in Malawi: an empirical investigation," Working Papers 20037, University of South Africa, Department of Economics.
    18. Oussama Elkhalfi & Rachid Chaabita & Kamal Zahraoui & Hicham El Alaoui, 2023. "Public Spending on Human Capital and Economic Growth in Morocco," International Journal of Economics and Financial Issues, Econjournals, vol. 13(4), pages 102-110, July.
    19. Amavilah, Voxi Heinrich, 2007. "The effects of technology-as-knowledge on the economic performance of developing countries: An econometric analysis using annual publications data for Botswana, Namibia, and South Africa, 1976-2004," MPRA Paper 3482, University Library of Munich, Germany.
    20. Cruz-Rodríguez, Alexis, 2015. "Crecimiento económico y desalineación del tipo de cambio real en la República Dominicana: ¿Hay alguna relación? [Economic growth and the real exchange rate misalignments in the Dominican Republic: ," MPRA Paper 70974, University Library of Munich, Germany.

    More about this item

    Keywords

    GDP growth; GDP growth drivers; selected European countries; dynamic panel data; System GMM.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

    Statistics

    Access and download statistics

    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:beo:journl:v:68:y:2023:i:238:p:59-86. 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: Goran Petrić (email available below). General contact details of provider: https://edirc.repec.org/data/efbeoyu.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.