Effects of Internal and External Factors on Economic Growth in Emerging Economies: Evidence from CEE Countries

Figures & data

Table 1. Summary statistics for the interest variables.

	LabF	Dinv	FDI	GDP	Trade openness
Minimum	34.45000	1.15731	−41.50820	−27.56682	13.39
Maximum	73.59400	42.00000	54.64873	92.20156	190.42
Mean	55.72180	24.13581	4.80680	3.57510	101.6188
Std. Deviation	5.65303	5.82790	6.48601	6.61273	33.74659
Skewness	−0.832	0.173	2.543	5.338	0.322
Kurtosis	1.965	0.970	26.733	77.331	−0.382
N	384	434	407	429	437

Source: Own processing.

Figure 1. 30 years of evolution for GDP per capita in CEE countries.

Table 2. Pearson correlation between numeric variables.

Variables	FDI	ExpImp	Dinv	LabF	GDP
FDI	1	0.090* (0.070) 402 obs.	0.204*** (0.000) 400 obs.	−0.111** (0.033) 372 obs.	0.094* (0.062) 400 obs.
ExpImp		1	0.195*** (0.000) 434 obs.	0.303*** (0.000) 376 obs.	0.061 (0.207) 423 obs.
Dinv			1	0.160*** (0.002) 374 obs.	0.360*** (0.000) 421 obs.
LabF				1	−0.002 (0.966) 376 obs.

Source: Own processing using SPSS 25.0.

*, **, *** represent levels of significance of 10%, 5% and 1%.

Table 3. The testing for stationarity of the numeric variables.

Variables	Levin, Lin &Chu t*	Sig.	Cross-sections	Observations
FDIi	−3.85072	0.000	16	375
ExpImpi	−2.15632	0.015	16	405
Dinvi	−3.10095	0.001	16	402
LabFi	−1.82895	0.034	16	336
GDPi	−26.8532	0.000	16	397

Source: Own processing using Eviews10.

Table A1. Summary description of variables

Variables	Type	Description	Source
Gross Domestic Product (GDP)	Numeric variable	The growth rate of GDP per capita (%)	World Bank Database, for the 1990–2019 period of time
Labor force participation rate (LabF)	Numeric variable	The proportion of the population ages 15 and older that is economically active.	International Labor Organization, ILOSTAT database, for the 1990–2019 period of time.
Openness to international trade (ExpImp)	Numeric variable	The ratio of the sum of exports plus imports to total output (GDP)	World Bank national accounts data, and OECD National Accounts data files, for the 1990–2019 period of time.
Foreign direct investment (FDI)	Numeric variable	The net inflows of investment to acquire a lasting management interest (10% or more of voting stock) in an enterprise operating in an economy other than that of the investor. This series shows net inflows in the reporting economy from foreign investors, and is divided by GDP.	International Monetary Fund, International Financial Statistics and Balance of Payments databases, World Bank, International Debt Statistics, and World Bank and OECD GDP estimates, for the 1990–2019.
Domestic investments (Dinv)	Numeric variable	Outlays on additions to the fixed assets of the economy plus net changes in the level of inventories, divided by GDP.	World Bank national accounts data, and OECD National Accounts data files, for the 1990–2019 period of time.
FTSE Russell Classification (FTSE)	Categorical variable	The classification of countries, based on the performance of the financial markets: 0 – Not indexed 1 – Frontier 2 – Secondary emerging 3 – Advanced emerging 4 – Developed	FTSE Russell market classification, for the 1990–2019 period of time.

Source: Own processing

The estimation of the regression parameters for testing H1 and H2

Variables	Model 1		Model 2		Model 3
	Coefficient	t	Coefficient	t	Coefficient	t
Intercept	−3.211664	−2.43478**(0.015)	−0.48989	−0.126227(0.899)	−4.18096	−1.065247(0.288)
FDI	0.057522	1.579188(0.115)			0.002999	0.089117(0.930)
ExpImp	0.072123	5.15041***(0.000)			0.050957	3.858822***(0.000)
FTSE	−2.131158	−5.23527***(0.000)			−1.38521	−3.63997***(0.000)
LabF			−0.113620	−1.736388*(0.083)	−0.10205	−1.590065(0.113)
Dinv			0.411954	9.410627***(0.000)	0.351871	7.850251***(0.000)
F	3.481; sig. = 0.000		7.149; sig. = 0.000		6.416; sig. = 0.000
R^2	0.143		0.256		0.272
Population	396 observations		371 observations		365 observations

*, **, *** represent levels of significance of 10%, 5% and 1%.

Source: Own processing using Eviews10.