Growth Transition in Selected Developing Countries of Europe and Russian Federation

Abstract

The study examines the growth transition of the developing countries of Europe and also of Russian Federation. In these countries there is a transition from planned economy to market economy. The present research examines transition in the selected developing countries of Europe and Russian Federation. According to IMF definition 2014 the developing countries of Europe are Hungary, Poland, Romania, Lithuania and Turkey. Russian Federation was also analysed. The results highlight that the population in these countries is not increasing at a high rate. In Lithuania population growth rate is low from 1999 to 2014, whereas, on the other hand population of Turkey is continuously growing. The present study examines the growth rates of Gross Domestic Product (GDP), Population, Net Exports and Foreign Direct Investment (FDI) for the period 1999 to 2014. In the period 2007-200, there is decline in all variables, viz. FDI, population, and net exports. This could be due to the impact of recession. The growth of different components has been analyzed with the help of trend rates of growth. To study the factors which cause the effects on growth, multiple regressions has been used by taking GDP as dependent variable and FDI, Population and net export as the independent variable. The year on year growth rates have also been calculated. The results have shown the true picture of recession for the developing countries of Europe and for Russian Federation. From the analysis it has been concluded that recession had its impact on these countries but somehow the countries are able to grow up after it.