The Hard Worker, the Hard Earner, the Young and the Educated: Empirical Study on Economic Growth across 11 CEE Countries

Abstract

Economic growth is an important metric for the sustainable development of any region or country. Central and Eastern Europe members of the European Union are important players of the single market, which implements regional policies to mitigate socio-economic differences between its newer and established members. The present study examines the factors that shape the phenomenon of economic growth across 62 NUTS 2 regions from 11 countries in Central and Eastern Europe during the period 2011–2020. The study investigates determinants related to education level, involvement of young people in the labor market, household net income, high-speed internet facilities and overall hours spent at work during a year. Three panel data models estimated with first-differenced generalized method of moments showed that regional economic growth was significantly influenced mainly by income, the rate of young employees and educational attainment level. Relevant insights and policy implications for regions in CEE countries are addressed.