Abstract:

The relationship between political stability and macroeconomic determinants is a topic that has been frequently discussed in the theory of economics, especially in recent years. This study examined the relationship between the 2002-2017 period and the European Union member 10 Central and Eastern Europe (MDA) transitional economies (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia, Romania and Bulgaria) and macroeconomic determiners by panel data analysis method. As a dependent variable in empirical analyses, the political stability and as an independent variable, the doll variable has been used to indicate the unclean domestic status per person, the trade transparency rate, the consumer price index, the unemployment rate and the dates of membership in the union. In the empirical analysis made using the current panel data econometrics, according to the panel vector autoregression model, from the short-term trade transparency rate and from the consumer price index to political stability, according to the panel error correction model, from the European Union participating doll exchange, from the non-profit domestic income per person, from the unemployment rate, from the trade transparency rate and from the consumer price index, there is a long-term cause to political stability in a whole.

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