ECONOMIC GROWTH AND IMPACT FACTORS IN COUNTRIES OF CENTRAL AND EASTERN EUROPE

Abstract

This paper starts from the premise that the performance of the economies of different countries, respectively their economic growth, is sinthtically expressed by the GDP growth indicator, whose dynamics evolves under the impact of a variety of determining factors, including some of financial-monetary nature. Thus, there are highlighted specific causal linkages and influences of economic and financial factors represented by certain indicators (inflation, unemployment, exports as percentage of GDP, imports as percentage of GDP, domestic credit as percentage of GDP, non-performing loans rate) to GDP growth rate, by using econometric methods. Much of the paper is focused on on shaping an econometric model in which GDP growth rate is dependent variable and the other mentioned indicators are impact factors, respectively determinant variables. Along the mentioned determining factors, in our model is evaluated also the impact of the manifestation of the recent financial crisis, considering it as an additional determinant dummy variable. By processing the data for a group of countries of Central and Eastern Europe over the period 2000-2013, there result findings on the impact of each of the determining factors on the economic growth in the countries concerned and are formulated the appropriate assessments and conclusions.