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The impact of macroeconomic indicators of economic growth: an empirical analysis of Central and Eastern European countries

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  • Alin Vasile Străchinaru

    (Alexandru Ioan Cuza University of Iași, Iași, Romania)

Abstract

A primary factor in determining the well-being of the population is economic growth, as this indicator is used to evaluate the success of the development of an economy. This article investigates the effects of macroeconomic indicators on economic growth in Central and Eastern European countries in a panel for the period 2000 to 2022.At the same time, we want to highlight the most current studies in the field with reference to the evolution of macroeconomic indicators with an impact on economic growth, in a dynamic and unpredictable context of socio-economic turmoil, as if more significant in the last 3 (three) years. The set of macroeconomic indicators was subjected to least squares (OLS) regression to establish the degree of relationship between them and economic growth in the selected sample. The regression results show that a set of variables (inflation rate, real interest rates, domestic credit granted to the private sector, current account balance, respectively government spending) have a negative and significant impact on economic growth, while trade openness has a positive impact. These findings underline the need to implement sound macroeconomic policies that promote sustainable economic development.

Suggested Citation

  • Alin Vasile Străchinaru, 2023. "The impact of macroeconomic indicators of economic growth: an empirical analysis of Central and Eastern European countries," Journal of Financial Studies, Institute of Financial Studies, vol. 15(8), pages 155-176, December.
    • Handle: RePEc:fst:rfsisf:v:15-special-december:y:2023:i:8:p:155-176
    DOI: 10.55654/JFS.2023.SP.23
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    More about this item

    Keywords

    economic growth; macroeconomic indicators; regression (OLS) and autoregressive model.;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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