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A dynamic and growing manufacturing sector is critical for growth as this sector is globally known as the 'engine of growth'. The objective of this study was to assess the impact of macro-economic variables, including economic growth, producer price index (PPI), and exports on the manufacturing sector of the Visegrád countries, from 1995 to 2018. A quantitative research methodology was utilized via a panel data analysis to assess the longand short-run relationships between the variables using econometric methods such as the Fisher-Johansen co-integration test, FMOLS and DOLS, and Granger causality tests. The main results indicated a long-run relationship between all the variables, with economic growth having the highest impact on manufacturing, while an increase in exports was also found to enhance the sector. Therefore, governments in the Visegrád group should endeavour to stimulate economic activities in support of the manufacturing sector by means of stable macro-economic policy implementation.

An assessment of the impact of various macro-economic variables on the manufacturing sector: The case of the Visegrád four