DETERMINANTS OF ECONOMIC GROWTH IN THE COUNTRIES OF CENTRAL AND EASTERN EUROPE

Sustainability of global integration-oriented trends is conditional upon the output per capita convergence among the integrated member countries. The aim of this paper is, thus, to analyze in greater detail the issues regarding economic growth and to defi ne growth factors in chosen countries of Central and Eastern Europe. After the theoretical and empirical survey of relevant growth literature, the paper continues with an overview of the transformation process and a specifi cation of its basic characteristics. Special ref-erence was made to Bulgaria, Croatia and Romania, whose economic performance was analyzed relative to that of the chosen surrounding countries, members of the European Union. Results show that the economic performance was relatively uniformed amongst the sample countries, while the analyzed growth factors’ behavior was in accordance with conclusions of the relevant growth theories. Important to emphasize is the identifi cation of virtually non-existent technological progress, the generator of long-term economic growth. Analysis did not only defi ne the current economic trends, but was also directed towards the identifi cation of the way in which present and future economic and integration processes would infl uence growth factors.