| Title | The Finance-Growth Nexus and the Role of Institutional Development: A Case Study of the Western Balkan Countries |
| Publication Type | Conference Paper |
| Date Published | 23-26 June 2022 |
| Conference Name | 13th Days of BHAAAS in Bosnia-Herzegovina |
| Edition | International Conference on Sustainable Development, Sarajevo |
| Publication Language | English |
| Authors | Smolo, E |
| Publisher | Bosnian-Herzegovinian American Academy of Arts and Sciences (BHAAAS) |
| Keywords | financial development; institutional development; economic growth; emerging countries; transition economies; Western Balkans |
| Abstract | This paper empirically investigates the impact of finance and institutions on the economic growth of the Western Balkan economies – Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, and Serbia – using a panel data analysis covering 2000-2020. While individually, neither finance nor institutions significantly impact economic growth, they increase the sample countries’ GDP when the two interact. Furthermore, the results suggest that the finance-growth relationship is non-linear, with a positive impact having a threshold. This relationship also depends on the sample’s institutional development (and vice versa). Similarly, this relationship depends on the proxy used, and hence, we need to be careful when making conclusions. |
| Refereed Designation | Refereed |
The Finance-Growth Nexus and the Role of Institutional Development: A Case Study of the Western Balkan Countries
