Application of Vector Measure Construction Methods to estimate growth factors of fundamental importance for the economy on the example of nations in transition

Abstract The article attempts to analyse the fundamental factors of economic growth in the selected countries of Central and Eastern Europe and Central Asia, which in the early 1990s introduced a market system in their economies. The economies under studies were analysed by indicators characterizing fundamental growth factors, time and cross-sectional analyses and the economies were compared and classified using the Vector Measure Construction Method (VMCM). The empirical part of the study was preceded by a presentation of the nature and significance of fundamental factors of economic growth and a description of the relationships between them. The results of the analysis indicate that for various group of countries distinguished in terms of development another fundamental growth factors were important. For the richest countries international integration (economy openness) seems to be the most relevant element, while for the least developed countries - geographic location and the institution quality are the most important.