ECONOMIC GROWTH DRIVERS: EMPIRICAL FINDINGS FOR DEVELOPING EUROPEAN COUNTRIES
DOI:
https://doi.org/10.17721/1728-2667.2026/228-1/1Keywords:
economic growth, economic growth drivers, developing economies, gross domestic product, factors of production, panel data model, modellingAbstract
B a c k g r o u n d . The relevance of this article lies in the persistent importance of economic growth in developing economies as a central subject of modern economic research. The growing integration of global markets and rapid technological change have significantly influenced the pace and structure of development across countries. Identifying the fundamental drivers of growth is essential for shaping policies that ensure long-term stability and sustainable progress. The experience of countries that have successfully transitioned from developing to advanced status offers valuable empirical evidence. Examining these cases makes it possible to determine the most significant factors contributing to economic growth. In this context, the study of growth drivers in developing European economies acquires particular importance for understanding their prospects for accelerated and sustainable development.
M e t h o d s . The study applies a combination of theoretical analysis, comparative assessment, and regression modeling to provide a comprehensive examination of economic growth drivers.
R e s u l t s . In this study, using empirical analysis, it was found that the most important factors of economic growth were the amount of investment in real assets, the effectiveness of public spending, and investment in science and technology. However, the quality of institutions and demographic changes require a deeper analysis, since their impact has been ambiguous. Empirical analysis has shown that the significant factors of economic growth are the volume of investment in real assets, the rate of population growth, and the share of international trade in GDP. In contrast, the quality of institutions and spending on education and R&D require deeper analysis, since their impact is not observed in the short term.
C o n c l u s i o n s . Based on the analysis of theoretical models and empirical findings, the key factors that have the greatest impact on the growth rate of GDP per capita have been identified. Drawing on both the theoretical analysis and empirical results, practical recommendations were formulated for Ukraine's future economic strategy. Today, the urgent need to define and build a path to post-war recovery and further economic growth in Ukraine makes this research relevant.
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