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Exports, investments and economic development of pre-accession countries of the European Union: an empirical investigation of Bulgaria and Romania

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  • Nikolaos Dritsakis

Abstract

This paper attempts to analyse the relationship between exports, investments and economic development in two pre-accession countries of the European Union, Bulgaria and Romania. For investigation of this relationship a multivariate autoregressive VAR model is used. The results of cointegration analysis showed that there is one cointegrated vector among exports, investments and economic growth for the two countries. Granger causality tests based on error correction models (ECM) indicated that there is a 'strong Granger causal' relation between economic growth and exports as well as between investments and exports for the two countries. In addition, economic development and capital accumulation in an economy seem to have just as much of an influence on exports as exports have on capital accumulation and economic development.

Suggested Citation

  • Nikolaos Dritsakis, 2004. "Exports, investments and economic development of pre-accession countries of the European Union: an empirical investigation of Bulgaria and Romania," Applied Economics, Taylor & Francis Journals, vol. 36(16), pages 1831-1838.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1831-1838
    DOI: 10.1080/00036840410001710627
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    Cited by:

    1. Nikolay NENOVSKY & Kiril TOCHKOV & Camélia TURCU, 2011. "Monetary Regimes and EU Accession: Comparing Bulgaria and Romania," LEO Working Papers / DR LEO 1251, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    2. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2013. "The Impact of Trade Integration with the European Union on Productivity in a Posttransition Economy: The Case of Polish Manufacturing Sectors," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 49(2), pages 84-104, March.
    3. Richard Gardiner & Petr Hajek, 2020. "Interactions among energy consumption, CO2, and economic development in European Union countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 723-740, July.
    4. Harrison, Ann E. & Rodriguez-Clare, Andres, 2009. "Trade, Foreign Investment, and Industrial Policy," MPRA Paper 15561, University Library of Munich, Germany.
    5. Juncal Cunado & Fernando Perez de Gracia, 2006. "Real convergence in some Central and Eastern European countries," Applied Economics, Taylor & Francis Journals, vol. 38(20), pages 2433-2441.
    6. Christine Mutz & Thomas Ziesemer, 2008. "Simultaneous estimation of income and price elasticities of export demand, scale economies and total factor productivity growth for Brazil," Applied Economics, Taylor & Francis Journals, vol. 40(22), pages 2921-2937.
    7. Oana Cristina Popovici & Adrian Cantemir Călin, 2016. "Economic Growth, Foreign Investments and Exports in Romania: A VECM Analysis," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 19(61), pages 95-122, September.
    8. E.Tsanana & C. Katrakilidis, 2016. "The issue of convergence: New empirical evidence for the Central Eastern Europe area," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 16(1), pages 53-62.
    9. Awokuse, Titus O., 2007. "Causality between exports, imports, and economic growth: Evidence from transition economies," Economics Letters, Elsevier, vol. 94(3), pages 389-395, March.
    10. Ramona Simut & Ioana Mester, 2014. "An Investigation Of Cointegration And Causality Between Investments, Exports, Openness, Industrial Production And Economic Growth: A Comparative Study For The East European Countries," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 369-378, July.

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