engleski

The impact of world economic crisis on the sustainable growth of the South-Eastern European countries: Does regional cooperation matter?

The analysis is focused on sustainable economic growth of South-Eastern European countries (SEE) in the conditions of global economic crisis. Statistical data indicate that those countries experienced slow growth of GDP during the first transition period of 1989 - 1998. During the second 1999 – 2007 period, GDP growth was faster due to higher growth of export, domestic demand and inflows of foreign direct investments (FDI). In 2008, the global financial crisis has an impact on the decreasing growth rate of export as well as on lower inflows of FDI with the worsening of economic performances and rising unemployment. Since the SEE countries are faced with the rising protectionism at the global and EU markets, the author suggests straightening regional and economic integration by trade facilitation and enhancing inflows of FDI between countries in the region. However, intensive competition, financial crisis and complex adjustment process of the candidates’ countries on the way to the accession to the EU market makes the future growth more difficult.

global crisis; foreign direct investment; regional cooperation

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