Macroeconomic Stability and Its Impact on the Economic Growth of the Country

The main purpose of this research is to study the role and impact force of macroeconomic stability on economic growth in the period from 2000 to 2016, using the modified Cobb-Douglas production function. The results of Global Competitiveness Report, published by World Economic Forum, demonstrated th...

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Bibliographic Details
Published in:Montenegrin journal of economics 2018-03, Vol.14 (1), p.159-170
Main Authors: Vasylieva, Tatiana, Lyeonov, Sergij, Lyulyov, Oleksii, Kyrychenko, Kostiantyn
Format: Article
Language:English
Subjects:
Budget deficits
Central banks
Decentralization
Economic conditions
Economic growth
Economic models
Economic summit conferences
Exports
Foreign exchange rates
Foreign investment
GDP
Global economy
Globalization
Gross Domestic Product
Growth rate
Human capital
Human Development Index
Inflation rates
International finance
macroeconomic stability
Macroeconomics
Misery index
Per capita
physical capital
Production functions
Transition economies
Trends
Unemployment
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Summary:The main purpose of this research is to study the role and impact force of macroeconomic stability on economic growth in the period from 2000 to 2016, using the modified Cobb-Douglas production function. The results of Global Competitiveness Report, published by World Economic Forum, demonstrated that at the existing level of economic growth in Ukraine the basic drivers for improvement of the country's competitiveness are necessary to be considered for building of the production function. Basing on the analysis performed, the author created odified Cobb-Douglas production function where Macroeconomic stability, openness of the economy and foreign direct investments are used as additional explanatory variables of Cobb-Douglas production function. Obtained findings indicate the high level of compliance of the built model with the initial data. Herewith, the assessment of the elasticity of macroeconomic stability is positive and statistically significant.
ISSN:1800-5845
1800-6698
DOI:10.14254/1800-5845/2018.14-1.12