QUALITY OF INSTITUTION AND ECONOMIC GROWTH OF THE COUNTRIES OF THE EUROPEAN UNION AND THE WESTERN BALKANS
Abstract
The paper analyzes the intensity of the influence of the quality of institutions according to the data from the World Bank's specialized Worldwide Governance Indicators database on the growth of gross domestic product per capita of 33 countries of Europe through linear and exponential regression analysis for the period from 1996 to 2016. The observed European countries are divided into three groups: 15 European Union member states in 1995; 13 EU member states from 2004, 2007 and 2013, as well as five countries of the Western Balkans that negotiate or have the status of a candidate for EU membership, in the period from 1996 to 2016. The results of the research have shown that the quality of the institutions had a very positive impact on the economic growth of the observed countries of Europe. According to statistics, positive interdependence is the most significant among the Western Balkan countries. The conclusion is that these countries have to pay special attention to the development of institutions in the process of joining the European Union.
Keywords
Full Text:
PDFReferences
Acemoglu, D., Johnson, S. & Robinson, J. (2005). The Rise of Europe: Atlantic Trade. Institutional Change, and Economic Growth, 95 (3) 546-579.
Acemoglu, D., Johnson, S., Robinson, J. A. & Yared, P. (2005). From education to democracy ?. American Economic Review, 95 (2), 44-49.
Alonso, J. & Garcimartin, C. (2013). The Determinants of Institutional Quality. More on the Debate, Journal of International Development, 25 (2), 206-226.
Barro, R. (1991). Economic Growth in a Cross Section of Countries. The Quarterly Journal of Economics, 106 (2), 407-443.
Cvetanovic, S. & Mladenovic, I. (2015). Economics of Capital and Financing of Development. Nis: own edition.
Cvetanovic, S. Kostic, V. & Milacic, Lj. (2016). European Union: Development, Constitutional Design and Common Economic Policies. Kosovska Mitrovica: Faculty of Economics, University of Pristina.
De Haan, J. & Sturm, J. E. (2000). On the relationship between economic freedom and economic growth. European Journal of Political Economy, 16 (2), 215-241.
Haggard, S. & Tiede, L.B. (2011). The rule of law and economic growth: where are we?. World Development, 39 (5), 673-685.
Knack S. & Keefer, P. (1995). Institutions and Economic Performance: Cross-Country Tests Using Alternative Institutional Measures. Economics and Politics, 7 (3), 207-227.
Mauro, P. (1995). Corruption and Growth. The Quarterly Journal of Economics, 110 (3), 681-712.
Nawaz, S. (2015). Growth effects of institutions: A disaggregated analysis. Economic Modeling, 45, 118-126.
North, D. (1994). Economic Performance Through Time. The American Economic Review, 84 (3) 359-368.
Rodrik, D. (2008). "Thinking about Governance" in D. North et al., Governance, Growth and Development Decision Making. Washington, DC: World Bank, pp. 17-24.
Rodrik, D., Subramanian, A. & Trebbi, F. (2004). Institutions Rule: The Primacy of Institutions, Geography and Integration in Economic Development. Journal of Economic Growth, 9, 131-165.
Tavares, J. & Wacziarg, R. (2001). How democracy affects growth. European Economic Review, 45 (8), 1341-1378.
Valeriani, E. & Peluso, S. (2011). The impact of institutional quality on economic growth and development: An empirical study. Journal of Knowledge Management, Economics and Information Technology, 1 (6), 1-25.
Van den Berg, H. (2016). Economic growth and development. World Scientific Publishing Company.
World Development Indicators. (n.d.). Retrieved January 3, 2019, from https://databank.worldbank.org/data/source/world-development-indicators. World Bank Databank.
WGI project. (n.d.). The Worldwide Governance Indicators. Retrieved January 11, 2019, from http://info.worldbank.org/governance/wgi/#home. World Bank.
DOI: https://doi.org/10.22190/FUEO1902117K
Refbacks
- There are currently no refbacks.
© University of Niš, Serbia
Creative Commons License CC BY-NC-ND
ISSN 0354-4699 (Print)
ISSN 2406-050X (Online)