It is impossible to analyze a country's economy by taking into account only the market factors. Every economic system must be incorporated and harmonized with the continuing development of a country, a trend that reflects technological changes and innovations and, also, political conflicts that results in various interests and institutions being represented and modified. The purpose of this paper is to analyze the interplay between economics and politics and its effect on economic growth within

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... the CEE countries. It is important to include political factors to analyze the economic process and to observe to what extent and in what direction the political determinants of a state government affects its economic performance. As a first step for this analysis we would present the correlations among the economic development and the political determinants. Next, we would realize an examination of the effects that different variables have on economic growth, including those representing the political determinants in our study. One of the variables used in our study is the level of education from each country and we could observe that it has an important role in a country's economic development as its presence in our models modifies the impact of the political determinants from that country. In the end we would present the findings and our conclusions, by highlighting the importance of a political system in a country. The methodology used in this study is both theoretical and empirical, as we adopted the previous scientific research as a theoretical basis and we realized our quantitative analysis using different econometric methods. The main goal of any government is to increase the welfare of its citizens and by the mean of this paper we could observe in what extent the political systems from CEE countries had a positive impact on their economic development.