World Development Indicators: Discovering high-weighting factors for the economic growth of Bulgaria, Czech Republic and Romania

  • Vladimir Yordanov PhD student
  • Gergana Kalcheva
  • Mihaela Angelova PhD student
Keywords: Economic Development; Economic Growth; GDP; Eastern European Countries, Covid-19 pandemic


Background: Economists have created various measures to assess the development of a nation or a country. The ability of people to make extended democratic choices, having variety of employment opportunities, access to high quality education and healthcare facilities, as well as clean and safe physical environment defines the level of economic progress in different countries.

Objectives: The aim of this paper is to discover the key determinants of economic growth of part of the lower developed territorial district, namely for the three countries Bulgaria, Romania and Czech Republic.

Methods: In this research we use data from the World Bank representing a set of the world development indicators. Three Eastern European countries, part of the European union, including Bulgaria, Romania and Czech Republic are investigated in the study. Random forest technique is used to identify the features’ importance. Linear regression is applied next to select the most relevant factors related to the GDP growth among the selected countries.

Results: The results point out that the most important indicators for the economic development differ on country level. Some of the strongest predictors are level of employment, production, level of urbanization, communication and computer service import, percentage of merchandise import and commercial service export.

Conclusion: The conducted analysis reveals that the three countries should use their strengths and pay more attention on improving work and operational environment, using new technologies and ensuring high-quality of goods and services. Working together with the other European countries, they might lend each other a hand and grow economically as part of the European union.


1. Adriansson, N., and Mattsson, I., 2015. Forecasting GDP Growth, or How Can Random Forests Improve Predictions in Economics?, Uppsala university department of statistics

2. Al-mutawkkil A., Heshmati A., Hwang J., 2009. Development of telecommunication and broadcasting infrastructure indices at the global level, Telecommunications Policy, Volume 33, Issues 3-4, 176-199

3. Angelova, M., 2021. Factors Affecting the Active Life of People Aged 50 and Over in Europe before and during the pandemic, Revista Inclusiones Vol: No 8 (2021): 62-90;

4. Arouri, M.E., Ben Youssef, A., M’henni, H., & Rault, C., 2012. Energy Consumption, Economic Growth and CO2 Emissions in Middle East and North African Countries. Energy eJournal.

5. Bandres, Е., Cadea, M.D., 2019. Investigating causal relations between public spending and economic growth in Europe. Revista de Economía Mundial, 51, 51-78.

6. Borensztein, Eduardo and de Gregorio, Jose and Lee, Jong-Wha, 1995. How Does Foreign Direct Investment Affect Economic Growth?, (March 1995). NBER Working Paper No. w5057, Available at SSRN:

7. Carp, L., 2012. Can Stock Market Development Boost Economic Growth? Empirical Evidence from Emerging Markets in Central and Eastern Europe. Procedia. Economics and finance, 3, 438-444.

8. Chakraborty, S., 2004. Endogenous lifetime and economic growth. J. Econ. Theory, 116, 119-137.

9. Eggoh J. C., Bangake Ch., Rault Ch., 2011. Energy consumption and economic growth revisited in African countries, Energy Policy, Volume 39, Issue 11, 7408-7421

10. Findlay, R., 1978. Relative backwardness, direct foreign investment, and the transfer of technology: a simple dynamic model. Quarterly Journal of Economics 92, 1–16

11. Forti. C. A. B., Yen-Tsang, Ch., Peixoto, F., 2011. Stock market development: an analysis from a multilevel and multi-country perspective, BAR, Braz. Adm. Rev. 8 (4), Dec 2011

12. Gurgul, Henryk and Lach, Lukasz, 2011. Causality analysis between public expenditure and economic growth of Polish economy in last decade. Published in: Statistics in Transition: new series. International journal of the Polish Statistical Association , Vol. 11, (2011): pp. 329-359.

13. Kavoussi R. M., 1984. Export expansion and economic growth: Further empirical evidence, Journal of Development Economics, Volume 14, Issue 1, 241-250

14. Knox P., 2009. Urbanization, Editor(s): Rob Kitchin, Nigel Thrift, International Encyclopedia of Human Geography, Elsevier, 112-118

15. Kostov L., 2017. The impact of economic growth on inflation and unemployment in Bulgaria, 2006-2016, SEER, 20-1

16. Lam P., Shiu A., 2010. Economic growth, telecommunications development and productivity growth of the telecommunications sector: Evidence around the world, Telecommunications Policy, Volume 34, Issue 4, 185-199

17. Matsuyama, K., 1992. Agricultural productivity, comparative advantage, and economic growth, Journal of Economic Theory, Volume 58, Issue 2, 317-334

18. Nguyen M. H., Nguyen L. D., 2018. The relationship between urbanization and economic growth: An empirical study on ASEAN countries, International Journal of Social Economics, ISSN: 0306-8293

19. Nissan, Edward, Miguel-Angel Galindo, and Maria Teresa Mindez, 2011. Relationship between tourism and economic growth. The Service Industries Journal 31: 1567-72

20. Oh, Chi-Ok., 2005. The contribution of tourism development to economic growth in the Korean economy. Tourism Management 26: 39-44

21. Olivier BIAU & Angela D’ELIA, 2010. Euro Area GDP Forecast Using Large Survey Dataset - A Random Forest Approach, EcoMod2010 259600029, EcoMod.

22. Pula, L., Elshani, A. 2018. The relationship between public expenditure and economic growth in Kosovo: Findings from a Johansen co-integrated test and a Granger causality test. Ekonomika, 97(1), 47-62.

23. Rasool, H., Maqbool, S. and Tarique, M., 2021. The relationship between tourism and economic growth among BRICS countries: a panel cointegration analysis. Futur Bus J 7, 1

24. Selimi, N. Sadiku, L. Sadiku, M., 2017. The impact of tourism on economic growth in the Western Balkan countries: An empirical analysis, International Journal of Business and Economic Sciences Applied Research

25. Şener, Sefer and Sarıdoğan, Ercan, 2011. The Effects Of Science-Technology-Innovation On Competitiveness And Economic Growth. Procedia - Social and Behavioral Sciences. 24. 815-828. 10.1016/j.sbspro.2011.09.127.

26. Shin, I., 2012. Income inequality and economic growth, Economic Modelling, Volume 29, Issue 5, 2049-2057

27. Soukiazis, E. & Proença, S., 2008. Tourism as an alternative source of regional growth in Portugal: a panel data analysis at NUTS II and III levels, Portuguese Economic Journal, Vol 7, No 1, pp 43-61

28. Uzoma-Nwosu, D.C., 2018. The causality between economic growth and government expenditure in Nigeria. Review of Innovation and Competitiveness, 4(4), 5-22.

29. Wang, J-Y., 1990. Growth, technology transfer, and the long-run theory of international capital movements. Journal of International Economics 29, 255–271.

30. World Population Review, 2021,

31. Yordanov, V., 2021. COVID-19 Pandemic: A Study on the Relationship between Social Distancing and Mental Health Status among people aged 50 and older in Europe, Revista Inclusiones Vol: No 8 (2021): 113-139.
How to Cite
Yordanov, V., Kalcheva, G., & Angelova, M. (2022). World Development Indicators: Discovering high-weighting factors for the economic growth of Bulgaria, Czech Republic and Romania. Vanguard Scientific Instruments in Management, 17. Retrieved from[]=283