The Eastern Partnership as a Vector of Economic Growth for EU Neighbours: Evidence from Panel Data
Keywords:
EaP, regional integration, international trade, FDI, economic growthAbstract
The global economy is significantly shaped by a complex process of globalization and regional economic integration that has induced various global transformations. In Europe, the regional integration deepening has generated significant socio-economic developments for the EU Member States, as well as for candidate countries or other EU neighbouring partners. Therefore, the research performed within this paper aims to analyse the role played by the Eastern Partnership (EaP), as a vector of economic growth for EU’s Eastern neighbours. The main focus is on the impact of international trade and capital flows emerged after 2009 (when the EaP was signed) upon the economic activity of six EU partners, as well as during longer time series, respectively 1992-2015. Thus, we have developed various macroeconometric double-log and semi-log (lin-log) models, processed through the correlated panels corrected standard errors (PCSE) method of estimation. The results highlight a significant positive impact of international trade flows upon the economic activity, an increase in exports and imports, as well as a higher openness degree towards the global market leading to improvements in GDP per capita levels. At the same time, international investment, mainly the foreign direct investment inflows, have important positive effects upon the living standards and welfare of citizens within the six panel considered economies.References
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