The Impact of Trade Openness on the Economic Growth of Southeast European Countries

Abstract This study examines the impact of trade openness on the economic growth of Southeast European countries for the period 2012–2022. The key factors analyzed include Gross Domestic Product (GDP), Government Spending (GE), Tax Revenues (TR), Unemployment (UN), Trade Deficit (DEF), and Trade Openness (TRO). A quantitative approach is adopted, using secondary annual data obtained from the World Bank and analyzed with Stata software. The results indicate that higher government spending, particularly when combined with elevated unemployment, tends to hinder economic growth, whereas tax revenues, trade deficits, and trade openness positively contribute to economic performance in the region. The originality of this study lies in its integrated econometric analysis of multiple macroeconomic factors affecting Southeast European countries—a region that has been underexplored in the empirical literature. The study also provides practical implications for policymakers, suggesting that effective fiscal and trade policies can foster sustainable economic growth. Furthermore, the findings offer valuable insights into regional development strategies, highlighting how trade openness and macroeconomic management can enhance economic performance across Southeast Europe.