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An Empirical Investigation on Determinants of Sustainable Economic Growth. Lessons from Central and Eastern European Countries

Author

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  • Batrancea Ioan

    (Faculty of Economics and Business Administration, Babes-Bolyai University, 58–60 Teodor Mihali Street, 400591 Cluj-Napoca, Romania)

  • Rathnaswamy Malar Mozi

    (Faculty of Economics and Business Administration, Babes-Bolyai University, 58–60 Teodor Mihali Street, 400591 Cluj-Napoca, Romania)

  • Gaban Lucian

    (Faculty of Economic Sciences, “1 Decembrie 1918” University of Alba Iulia, 15–17 Unirii Street, 510009 Alba Iulia, Romania)

  • Fatacean Gheorghe

    (Faculty of Economics and Business Administration, Babes-Bolyai University, 58–60 Teodor Mihali Street, 400591 Cluj-Napoca, Romania)

  • Tulai Horia

    (Faculty of Economics and Business Administration, Babes-Bolyai University, 58–60 Teodor Mihali Street, 400591 Cluj-Napoca, Romania)

  • Bircea Ioan

    (Faculty of Economics and Law, University of Medicine, Pharmacy, Science and Technology of Targu Mures, 38 Gheorghe Marinescu Street, 540142 Targu Mures, Romania)

  • Rus Mircea-Iosif

    (National Institute for Research and Development in Constructions, Urbanism and Sustainable Spatial Development “URBAN INCERC”, 117 Calea Floresti, 400524 Cluj-Napoca, Romania)

Abstract

The study focuses on the effects of imports, exports, financial direct investment inflow and financial direct investment outflow on sustainable economic growth expressed by various macroeconomic indicators (gross domestic product, gross domestic savings, gross domestic capital) using the least squares panel method. Sample data were selected for ten Central and Eastern European (CEE) countries and the time frame considered was 2005–2016. Generally, transitional economies have to incorporate strong savings and a steady capital formation in order to achieve higher economic growth via foreign direct investment. Results showed that the analyzed factors played a major role in the sustainable economic growth of CEE countries. Another important and valuable insight of this study is that the financial sector steers the process of achieving sustainable economic growth across CEE countries.

Suggested Citation

  • Batrancea Ioan & Rathnaswamy Malar Mozi & Gaban Lucian & Fatacean Gheorghe & Tulai Horia & Bircea Ioan & Rus Mircea-Iosif, 2020. "An Empirical Investigation on Determinants of Sustainable Economic Growth. Lessons from Central and Eastern European Countries," JRFM, MDPI, vol. 13(7), pages 1-24, July.
    • Handle: RePEc:gam:jjrfmx:v:13:y:2020:i:7:p:146-:d:380959
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