Title Influence of external factors on economic growth and sustainability /
Translation of Title Išorės veiksnių įtaka ekonomikos augimui ir darnumui.
Authors Parkhomenka, Aliaksandr
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Pages 82
Keywords [eng] Economic growth, Sustainability, External factors, Trade openness, FDI, Exchange rate, Panel regression, Debt, Crisis
Abstract [eng] The Master thesis examines the impact of external factors on economic growth and sustainability for the period 2000 to 2021 in EU8 countries. The systematic and detailed analysis of scientific literature regarding the problematics of external factors in the context of economic growth and sustainability is the foundation for the empirical assessment in the study. The selection of methods was based on the findings of notable and respected scholars. In order to answer the main research question: what extent the external factors influence economic growth and sustainability, 2 panel regression models have been developed. The research findings have been conducted utilizing EViews software. Statistically significant results of the Master thesis provide robust evidence that in EU8 countries a 1% increase in trade openness and exchange rate generates an equivalent of 0.15% and 0.06% increase in GDP, while accumulation of public debt and times of crises lead to a decline in the economic growth by 0.3% and 4.1% respectively. The external factors explain over 70 % of changes in economic growth. Moreover, analysis of the effects of external factors on sustainability revealed that trade openness, debt and crises led to improvements in sustainability. The findings indicate that external factors positively contributed to sustainability in Czechia, Estonia, Latvia, Poland and Slovenia, but adversely affected Hungary, Lithuania and Slovakia. The author believes that the empirical results of the study will be beneficial for policymakers to prevent possible negative consequences of externalities and promote the sustainability and green economic growth.
Dissertation Institution Vilniaus universitetas.
Type Master thesis
Language English
Publication date 2023