The national economy competitiveness: effect of macroeconomic stability, renewable energy on economic growth

Abstract

According to the reports of the Global Competitiveness which developed by the World Economic Forum, the competitiveness was defined as "a set of institutions, policies and production factors that form the level of the country's performance". This paper investigates the effect of macroeconomic stability, environmental performance on economic growth. The object of investigation - the countries with transformation process from the recourses to the effective economic model according to the reports of the Global Competitiveness which developed by the World Economic Forum. The authors indicated that the main goal to achieve the stable growth - increasing the level of the national economic competitiveness could be realized not only through the growth of the key determinants of the competitiveness: institutions; infrastructure; macroeconomic stability and etc., but also considering the aspects and parameters of country's environmental performance. The methodology instruments of the investigation were modified production function of Cobb-Douglas which considering the level of the country's macroeconomic stability and environmental performance. The period of investigation was 2000-2017 years. Under this research, the authors used the dataset from World Data Bank, Global Environmental performance Index, Global competitiveness report. The findings proved the correspondence of the developed models to the input dataset. Moreover, the assessments of the elasticity of the developed model components were positive and statistically significant.