THE NEXUS BETWEEN TRADE INFRASTRUCTURE DEVELOPMENT AND EXPORT: THE CASE OF CENTRAL AND EASTERN EUROPEAN COUNTRIES

Abstract

The focus of economic policymakers in Central and Eastern European countries (CEEC) is on developing and improving national infrastructure, including roads, railways and other forms of physical infrastructure needed for the realisation of economic activities, with the primary goal being to create a favourable business environment for foreign investments and export intensification. The article aims to examine whether the development of infrastructure in these countries has contributed to the increase in exports and to what extent, which would likewise examine the justification of infrastructure investments as a part of the economic strategy and foreign trade policy. The method of panel regression analysis with fixed effects was applied, which confirms the positive and statistically significant impact of infrastructure on export, justifying the initiative for the development of national infrastructure in the observed countries. Based on the obtained results, valid conclusions have been drawn regarding the theoretical and practical implications of the research, which point to the importance of physical infrastructure development as one of the leading determinants for export incentives.