Prague Economic Papers 2025, 34(1):45-77 | DOI: 10.18267/j.pep.884

The Impact of Infrastructure Development on the Economic Growth of the Countries in the Western Balkans and their EU Future

Danijela Jaćimović ORCID..., Milena Lipovina-Božović ORCID..., Bojan Pejović ORCID..., Sunčica Vuković ORCID...
Danijela Jaćimović: Corresponding author, Faculty of Economics, University of Montenegro, Podgorica,
Milena Lipovina-Božović: Faculty of Economics, University of Montenegro
Bojan Pejović: Faculty of Economics, University of Montenegro
Sunčica Vuković: Faculty of Economics, University of Montenegro

The infrastructure investment could strongly influence the economic growth in the Western Balkans countries and contribute to improved regional cooperation and reconciliation and to faster integration into the EU. However, it is essential that public investments in infrastructure are properly financed and managed. To measure the impact of infrastructure indicators on economic growth, panel regression analysis was used for the period 2000-2021, in six Western Balkan countries. The paper addresses the important question of how to intensify investments in infrastructure to achieve sustainable growth in the Western Balkans. The obtained results confirm the earlier findings about the significant impact of energy, ITC, and road infrastructure on economic growth in the Western Balkans.

Keywords: infrastructure investments, economic growth, Western Balkans, resilient economies
JEL classification: F15, F21, F23, F35, F36

Received: January 29, 2024; Revised: November 28, 2024; Accepted: December 30, 2024; Published: May 7, 2025  Show citation

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Jaćimović, D., Lipovina-Božović, M., Pejović, B., & Vuković, S. (2025). The Impact of Infrastructure Development on the Economic Growth of the Countries in the Western Balkans and their EU Future. Prague Economic Papers, 34(1), 45-77. doi: 10.18267/j.pep.884
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