Assessing Government Involvement in the Balkan Countries’ Economies
Assessing Government Involvement in the Balkan Countries’ Economies

Author(s): Presiana Nenkova, Velichka Nikolova, Angel Angelov
Subject(s): National Economy, Economic policy
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Government; Fiscal policy; Balkan countries; Cluster analysis
Summary/Abstract: The extent to which the government intervene the marketplace and the government’s role in the economy is an important factor, determining the economic results achieved by a country. In the academic literature, the question of whether the promotion of this participation contributes to an improvement of the development of a nation or, on the contrary, can contribute to a loss of competitive advantages, is debatable. This study focuses on the degree of involvement of national governments in the economies of the Balkan region countries. For the purpose of analysis, a cluster analysis is applied, through which the Balkan countries are divided into several groups (clusters), characterized by different degrees of government participation. Three periods are considered - before and in the first years of the global economic and financial crisis, as well as just before the current COVID-19 pandemic. The analysis is supplemented by an assessment of the impact of individual clusters on the economic development of these countries.

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