The main purpose of this paper is to determine and analyse the factors that affected economic growth in the EU’s Eastern Partnership and Central Asian countries in the 2000-2015 period. Economic growth is one of the main targets of economic policy of any country and influenced by various determinants. Of particular interest is the endogenous and exogenous nature of these factors. Having classified these factors into exogenous and endogenous ones, we examined and determined the significance and robustness of various factors influencing the economic growth in these countries, like investment, human capital, research and development, economic policies and macroeconomic conditions, openness to trade, geography, political factors and others. Correlation and factor analysis showed significance and strong association of GDP per capita with physical, human capital, and R&D in EaP countries and with natural resources and active population share in Central Asian countries.


economic growth, exogenous growth, endogenous growth

JEL Codes

O1; O3; O4

Full Text:



Acemoglu, D., Johnson, S., and Robinson, J., 2002. Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution. The Quarterly Journal of Economics, 117(4), 1231-1294. doi: http://dx.doi.org/10.1162/003355302320935025

Aghion, P., and Howitt, P., 1992. A Model of Growth Through Creative Destruction. Econometrica, 60(2), 323. doi: http://dx.doi.org/10.2307/2951599

Alesina, A., and Rodrik, D., 1994. Distributive Politics and Economic Growth. The Quarterly Journal of Economics, 109(2), 465-490. doi: http://dx.doi.org/10.2307/2118470

Auerbach, A., Hassett, K., and Oliner, S., 1994. Reassessing the Social Returns to Equipment Investment. The Quarterly Journal of Economics, 109(3), 789-802. doi: http://dx.doi.org/10.2307/2118422

Azman-Saini, W., Baharumshah, A., and Law, S., 2010. Foreign direct investment, economic freedom and economic growth: International evidence. Economic Modelling, 27(5), 1079-1089. doi: http://dx.doi.org/10.1016/j.econmod.2010.04.001

Barro, R., and Sala-i-Martin, X., 1995. Economic growth. New York: McGraw Hill.

Bassanini, A., and Scarpetta, S., 2003. The Driving Forces of Economic Growth. Paris: OECD Publishing.

Benhabib, J., and Spiegel, M., 1994. The role of human capital in economic development evidence from aggregate cross-country data. Journal of Monetary Economics, 34(2), 143-173. doi: http://dx.doi.org/10.1016/0304-3932(94)90047-7

Bloom, D., and Finlay, J., 2009. Demographic Change and Economic Growth in Asia. Asian Economic Policy Review, 4(1), 45-64. doi: http://dx.doi.org/10.1111/j.1748-3131.2009.01106.x

Bloom, D., Sachs, J. D., Collier, P., and Udry, C., 1998. Geography, Demography, and Economic Growth in Africa. Brookings Papers on Economic Activity, 1998(2), 207-295. doi: http://dx.doi.org/10.2307/2534695

Bloom, D., and Williamson, J., 1998. Demographic Transitions and Economic Miracles in Emerging Asia. The World Bank Economic Review, 12(3), 419-455. doi: http://dx.doi.org/10.1093/wber/12.3.419

Borensztein, E., De Gregorio, J., and Lee, J., 1998. How does foreign direct investment affect economic growth? Journal of International Economics, 45(1), 115-135. doi: http://dx.doi.org/10.1016/S0022-1996(97)00033-0

Brunetti, A., 1997. Political Variables in Cross-country Growth Analysis. Journal of Economic Surveys, 11(2), 163-190. doi: http://dx.doi.org/10.1111/1467-6419.00029

Bruno, M., and Easterly, W., 1998. Inflation crises and long-run growth. Journal of Monetary Economics, 41(1), 3-26. doi: http://dx.doi.org/10.1016/S0304-3932(97)00063-9

Cameron, G., 1998. Innovation and growth: A survey of the empirical evidence. Mimeo. http://www.nuff.ox.ac.uk/users/cameron/papers/empiric.pdf.

Checherita-Westphal, C., and Rother, P., 2012. The impact of high government debt on economic growth and its channels: An empirical investigation for the euro area. European Economic Review, 56(7), 1392-1405. doi: http://dx.doi.org/10.1016/j.euroecorev.2012.06.007

de Vaal, A., and Ebben, W., 2011. Institutions and the Relation between Corruption and Economic Growth. Review of Development Economics, 15(1), 108-123. doi: http://dx.doi.org/10.1111/j.1467-9361.2010.00596.x

Dollar, D., 1992. Outward-Oriented Developing Economies Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-1985. Economic Development and Cultural Change, 40(3), 523-544. doi: http://dx.doi.org/10.1086/451959

Easterly, W., 2001. The elusive quest for growth. Cambridge, Mass.: MIT Press.

Edey, M., 1994. Costs and benefits from moving from low inflation to price stability. OECD Economic Studies, 23(winter), 109-130.

European Council, 2009. Joint Declaration of the Prague Eastern Partnership Summit. http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/er/107589.pdf.

Fischer, S., 1993. The role of macroeconomic factors in growth. Journal of Monetary Economics, 32(3), 485-512. doi: http://dx.doi.org/10.1016/0304-3932(93)90027-D

Grier, K., and Tullock, G., 1989. An empirical analysis of cross-national economic growth, 1951-1980. Journal of Monetary Economics, 24(2), 259-276. doi: http://dx.doi.org/10.1016/0304-3932(89)90006-8

Grossman, G., and Helpman, E., 1991. Quality Ladders in the Theory of Growth. The Review of Economic Studies, 58(1), 43. doi: http://dx.doi.org/10.2307/2298044

Guloglu, B., and Tekin, R. B., 2012. A Panel Casuality Analysis of the Relationship among Research and Development, Innovation, and Economic Growth in High-Income OECD Countries. 2(1), 32-47.

Hall, R., and Jones, C., 1999. Why do Some Countries Produce So Much More Output Per Worker than Others? The Quarterly Journal of Economics, 114(1), 83-116. doi: http://dx.doi.org/10.1162/003355399555954

Hanushek, E., and Kimko, D., 2000. Schooling, Labor-Force Quality, and the Growth of Nations. The American Economic Review, 90(5), 1184-1208. doi: http://dx.doi.org/10.1257/aer.90.5.1184

Henderson, J., Storeygard, A., and Weil, D., 2012. Measuring Economic Growth from Outer Space. The American Economic Review, 102(2), 994-1028. doi: http://dx.doi.org/10.1257/aer.102.2.994

Hermes, N., and Lensink, R., 2003. Foreign direct investment, financial development and economic growth. The Journal of Development Studies, 40(1), 142-163. doi: http://dx.doi.org/10.1080/00220380412331293707

Jong-A-Pin, R., 2009. On the measurement of political instability and its impact on economic growth. European Journal of Political Economy, 25(1), 15-29. doi: http://dx.doi.org/10.1016/j.ejpoleco.2008.09.010

Kelley, A., and Schmidt, R., 1995. Aggregate Population and Economic Growth Correlations: The Role of the Components of Demographic Change. Demography, 32(4), 543. doi: http://dx.doi.org/10.2307/2061674

Knack, S., and Keefer, P., 1995. Institutions and Economic Performance: Cross-Country Tests Using Alternative Institutional Measures. Economics and Politics, 7(3), 207-227. doi: http://dx.doi.org/10.1111/j.1468-0343.1995.tb00111.x

Kormendi, R., and Meguire, P., 1985. Macroeconomic determinants of growth: Cross-country evidence. Journal of Monetary Economics, 16(2), 141-163. doi: http://dx.doi.org/10.1016/0304-3932(85)90027-3

Lensink, R., Bo, H., and Sterken, E., 1999. Does uncertainty affect economic growth? An empirical analysis. Weltwirtschaftliches Archiv, 135(3), 379-396. doi: http://dx.doi.org/10.1007/BF02707331

Lensink, R., and Morrissey, O., 2006. Foreign Direct Investment: Flows, Volatility, and the Impact on Growth. Review of International Economics, 14(3), 478-493. doi: http://dx.doi.org/10.1111/j.1467-9396.2006.00632.x

Levine, R., and Renelt, D., 1992. A Sensitivity Analysis of Cross-Country Growth Regressions. The American Economic Review, 82(4), 942-963.

Lipset, S., 1959. Some Social Requisites of Democracy: Economic Development and Political Legitimacy. The American Political Science Review, 53(1), 69-105. doi: http://dx.doi.org/10.2307/1951731

Lucas, R., 1988. On the mechanics of economic development. Journal of Monetary Economics, 22(1), 3-42. doi: http://dx.doi.org/10.1016/0304-3932(88)90168-7

Mankiw, N., Romer, D., and Weil, D., 1992. A Contribution to the Empirics of Economic Growth. The Quarterly Journal of Economics, 107(2), 407-437. doi: http://dx.doi.org/10.2307/2118477

Masters, W., and McMillan, M., 2001. Climate and Scale in Economic Growth. Journal of Economic Growth, 6(3), 167-186. doi: http://dx.doi.org/10.1023/A:1011398431524

Mauro, P., 1995. Corruption and Growth. The Quarterly Journal of Economics, 110(3), 681-712. doi: http://dx.doi.org/10.2307/2946696

Nadiri, M. I., 1993. Innovations and technological spillovers. NBER Working Paper, 4423(august), 1-45.

Petrakos, G., and Arvanitidis, P., 2008. Determinants of Economic Growth. 1(1), 12-30.

Podrecca, E., and Carmeci, G., 2001. Fixed investment and economic growth: New results on causality. Applied Economics, 33(2), 177-182. doi: http://dx.doi.org/10.1080/00036840122890

Rodriguez, F., and Rodrik, D., 2000. Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence. NBER. Macroeconomics Annual, 15(1), 261-325. doi: http://dx.doi.org/10.1162/08893360052390383

Rodrik, D., 2000. Institutions for high-quality growth: What they are and how to acquire them. Studies in Comparative International Development, 35(3), 3-31. doi: http://dx.doi.org/10.1007/BF02699764

Rodrik, D., Subramanian, A., and Trebbi, F., 2004. Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development. Journal of Economic Growth, 9(2), 131-165. doi: http://dx.doi.org/10.1023/B:JOEG.0000031425.72248.85

Romer, P., 1986. Increasing Returns and Long-Run Growth. Journal of Political Economy, 94(5), 1002-1037. doi: http://dx.doi.org/10.1086/261420

Romer, P., 1990. Endogenous Technological Change. Journal of Political Economy, 98(5), 71-102. doi: http://dx.doi.org/10.1086/261725

Romer, P., 1994. The Origins of Endogenous Growth. The Journal of Economic Perspectives, 8(1), 3-22. doi: http://dx.doi.org/10.1257/jep.8.1.3

Romer, P., and Griliches, Z., 1993. Implementing a National Technology Strategy with Self-Organizing Industry Investment Boards. Brookings Papers on Economic Activity. Microeconomics, 1993(2), 345-399. doi: http://dx.doi.org/10.2307/2534742

Sachs, J., and Warner, A., 1997. Sources of Slow Growth in African Economies. Journal of African Economies, 6(3), 335-376. doi: http://dx.doi.org/10.1093/oxfordjournals.jae.a020932

Sachs, J., Warner, A., Aslund, A., and Fischer, S., 1995. Economic Reform and the Process of Global Integration. Brookings Papers on Economic Activity, 1995(1), 1-118. doi: 10.2307/2534573

Sala-i-Martin, X., 1997. I Just Ran Two Million Regressions. The American Economic Review, 87(2), 178-183.

Solow, R., 1956. A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics, 70(1), 65. doi: http://dx.doi.org/10.2307/1884513

Vlah, V., 2015. The Eastern Partnership Project: The Challenges and Prospects for Development at the Present Stage. Power, 2, 25-32.

Whalley, J., and Zhao, X., 2013. The Contribution of Human Capital to China's Economic Growth. China Economic Policy Review, 02(01). doi: http://dx.doi.org/10.1142/S1793969013500015

DOI: http://dx.doi.org/10.1515/saeb-2016-0138


  • There are currently no refbacks.