Predrag Trpeski

This paper discusses the role of institutions in economic growth in selected European post-transition economies. During the 1990s, Central and Eastern European countries faced challenges adapting their political and economic systems to keep up with a rapidly changing global landscape. They needed new institutions like regulations, social norms, and organisations to support a capitalist economy. These institutions provide a framework for economic activity and guide individuals to act in ways that align with economic goals. They are crucial for creating a stable environment for economic growth, promoting investment and innovation, and reducing uncertainty, which is essential for economic success. To analyse this, we conduct an econometric analysis of 16 European post-transition countries from 1998-2019 using fixed-effect, Arellano and Bond’s first difference GMM estimator, and the system GMM estimator. The results indicate that institutions significantly impact economic growth.

This study examines trade determinants, with a particular focus on logistics within the context of a regional integration initiative. A gap in the literature concerning the application of gravity models to the TRACECA initiative is identified through the literature review. Subsequently, an analy­sis of the legal framework underpinning TRACECA is undertaken. Utilizing the World Bank’s Logistic Performance Index (LPI) within a gravity model framework, the study evaluates the impact of trade facilitation within the TRACECA region. Findings indicate positive associations between trade and GDP, common language, and shared borders, while distance exerts a neg­ative influence. The research underscores the role of the LPI in facilitating trade within TRACECA, advocating for collaborative endeavors to enhance logistics, remove latent barriers, and streamline customs procedures. Fur­thermore, the study advocates for increased investment to strengthen TRACECA’s trade facilitation initiatives, emphasizing the necessity of mutual political commitment to advance regional trade.

This paper investigates the link between economic performance and gross capital flows volatility in emerging market and developing economies.