Economic Growth in the Western Balkans: A Panel Analysis

Ziberi, Besime; Alili, Merita Zulfiu

doi:10.2478/jeb-2021-0015

Cited by 17 publications

(6 citation statements)

References 31 publications

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“…[80] Found that utilized data over 200 years for both developing and developed countries and found that the effect of the population is dependent on the level of economic growth of countries and concluded that low population in high-income countries is a problem while high population in a low-income country is also another challenge. A similar study by [81][82][83] study was carried out in SSA countries to find that population growth retards economic growth especially where hunger and inequality is the major challenge.…”

Section: Empirical Literature Reviews On Institutional Quality and Ec...mentioning

confidence: 90%

Effect of government revenue on economic growth of sub-Saharan Africa: Does institutional quality matter?

Ayana,

Demissie,

Sore

2023

PLoS ONE

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Following the approval of sustainable development goals at the global level, the link between fiscal policy, institutional quality, and economic growth has attracted special attention in economic literature. This study scrutinizes the effect of government revenue-institutional quality interaction on the economic growth of 43 Sub-Saharan Africa countries for the period of 2012–2022. Methodology-wise, the study employed the System Generalized Method of Moment (SGMM) to analyze the panel data gained from dependable data sources; the World Development Indicator and the Heritage Economic Freedom Index. The novelty of this study emanates from the estimation technique designated and the introduction of revenue-institutional quality into the economic growth model of SSA. The result of the study reveals that government revenue adversely affects economic growth while institutional quality positively enhances economic growth before interacting with each other. However, the interactive coefficient of government revenue and economic growth positively affected the real GDP growth rate of SSA countries over the study periods. Precisely, before interacting with institutional quality, a percentage change in government revenue, keeping all other things constant, leads to a 0.0866 percent decline in economic growth while it marks a 0.2329 percent upsurge in economic growth in the presence of institutional quality. The result of the study further shows that government revenue promotes the economic growth of the region when combined with institutional quality. On the other hand, foreign direct investment and openness to trade were the key sources of economic growth whereas the population growth rate adversely impacted economic growth in SSA countries. The policy implication of the study is that SSA needs to strengthen government revenue management. Further, the finding of the study implies that SSA countries need to improve institutional quality through promoting efficiency of the regulatory quality and the size of the SSA governments. In addition to this, the fast real GDP growth rate of SSA countries demands improved institutional quality indicators such as the rule of law and extended access to the open market.

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Section: Empirical Literature Reviews On Institutional Quality and Ec...mentioning

confidence: 90%

Effect of government revenue on economic growth of sub-Saharan Africa: Does institutional quality matter?

Ayana,

Demissie,

Sore

2023

PLoS ONE

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“…This is consistent with the reason that the weakening of remittances is caused by several things, such as the high level of corruption in the Islamic countries of the world, which undermines the impact of remittances on the economy. (Ziberi & Alili, 2021) Weak institutions, such as a lack of rule of law or regulation. (Kratou & Gazdar, 2015) If remittances are not protected by strong institutions, they cannot be used effectively to create new businesses, invest in infrastructure, or create jobs.…”

Section: Variablesmentioning

confidence: 99%

Macroeconomic Effects on Economic Growth in Muslim Countries: Political System as A Moderating Variable

Arohman,

Qoyum,

Ihsan

et al. 2023

Ekonomika Syariah

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This study seeks to explore the role of the political system in supporting the influence of macro variables on economic growth in the world's Islamic countries. Data obtained from the world bank during 2010-2021. The econometric model used in the research is the Generalized Method of Moments (GMM). The main finding is that the political system has a significant negative effect on growth. This negative effect is caused by the low value of the political index determined by world governance indicators. In addition, foreign direct investment and remittances are still the main variables in supporting economic growth in the Islamic countries of the world. In contrast, interest rates show negative effects on economic growth. Further results show that an ineffective political system is unable to strengthen the relationship between foreign direct investment, remittances, and interest rates on economic growth. These findings serve as an evaluation for the 2025 OIC internal implementation action program.AbstrakStudi ini berusaha untuk mengeksplorasi peran dari sistem politik dalam mendukung pengaruh variabel makro terhadap pertumbuhan ekonomi di negara Islam dunia. Data diperoleh dari world bank selama tahun 2010-2021. Model ekonometrika yang digunakan dalam penelitian ialah generalized method of moments (GMM). Adapun temuan utamanya ialah sistem politik berpengaruh negatif signifikan terhadap pertumbuhan. Efek negatif ini disebabkan dengan rendahnya nilai indeks politik yang ditentukan oleh world governance indicators. Selain itu, investasi asing langsung dan remitansi masih menjadi variabel utama dalam mendukung pertumbuhan ekonomi di negara-negara Islam dunia. Sebaliknya, tingkat suku bunga menunjukkan efek negatif terhadap pertumbuhan ekonomi. Hasil selanjutnya ditunjukkan bahwa sistem politik yang tidak efektif tidak mampu memperkuat hubungan antara investasi asing langsung, remitansi, dan tingkat suku bunga terhadap pertumbuhan ekonomi. Temuan ini menjadi evaluasi untuk program aksi OKI 2025 yang saat ini masih berlangsung.

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“…However, the results of the GLS model data also show that there is a difference among the countries of the region in terms of FDI's impact on economic growth. From a review of the literature, it is clear that there is a substantial body of research related to FDI inflow in the countries of the Western Balkans [2,8,11,12,[16][17][18][19][20][21][22][23]. Nevertheless, there is a lack of studies examining the effect of the FDI inflow on the insurance sector in these countries.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Based on the reviewed econometric books in relation to the applicable econometric models for testing our hypotheses, as well as based on works that have applied models with panel data specifically to analyze the effect of FDI in the six countries of the Western Balkans [18][19][20] or other authors [32][33][34], we will apply Pooled OLS, Fixed Effects, and Random Effects. Then, using functional tests, we will choose which of these three models is most suitable to use for testing our hypotheses.…”

Section: The Modelmentioning

confidence: 99%

The Effects of Foreign Direct Investment in the Insurance Industry in the Western Balkan Countries – A Panel Data Analysis

Berisha,

Sopi

2023

IJSDP

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The insurance industry is a solid cornerstone of the financial system, and by fostering an environment more favorable to investment, it significantly boosts economic growth. This is especially true for the Western Balkan countries, which are currently growing and joining the European Union. Developing countries can benefit from an additional avenue: the internationalization of insurance businesses through the reinsurance process. The aim of this research is to assess the potential impact of Foreign Direct Investment (FDI) on the insurance industry in the region. The research was carried out in six countries: Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, Kosovo, and Serbia. Data from these countries were collected between 2004 and 2021, allowing for an analysis using panel data econometric models, namely the Fixed Effects and Random-Effects models (GLS). The findings of the economic analysis for the three independent variables indicate that FDI inflow positively affects Gross Written Premium (GWP), Insurance Assets (InsAsset), and Penetration Rate (PenetRate) at the α=0.05 significance level. Additionally, the models have demonstrated that the three variables have variations between the countries regarding the impact of FDI inflows using the Lagrange Multiplier (LM) Method -Breusch-Pagan test, at a confidence level of α=0.05. Since the econometric models for the three cases are based on the Random-Effects model (GLS Method), random effects are to blame for the variations in FDI influence between countries. The results have consequences for the insurance industry as well as regional policymakers, especially in Kosovo, who are deciding what measures to take to promote foreign direct investment.

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Economic Growth in the Western Balkans: A Panel Analysis

Cited by 17 publications

References 31 publications

Effect of government revenue on economic growth of sub-Saharan Africa: Does institutional quality matter?

Effect of government revenue on economic growth of sub-Saharan Africa: Does institutional quality matter?

Macroeconomic Effects on Economic Growth in Muslim Countries: Political System as A Moderating Variable

The Effects of Foreign Direct Investment in the Insurance Industry in the Western Balkan Countries – A Panel Data Analysis

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