Economic Growth and Institutional Quality in South East Europe

Minović, Jelena and Aleksić, Vesna and Stevanović, Slavica (2021) Economic Growth and Institutional Quality in South East Europe. Ekonomika preduzeća, 69 (1-2). ISSN 0353-443X

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Abstract

The paper researched the causal relationship between institutional quality
measures and real gross domestic product growth (GDP) on the South
East European (SEE) countries in the period 1996-2016. To achieve the
aim of this research the panel techniques (the Dumitrescu-Hurlin noncausality approach) were used. The SEE suffers from very poor control
of corruption, as well as significant political instability, the weak rule of
law and poor government effectiveness. Our results indicate that there is
unidirectional homogeneous causality between political stability and real
GDP growth. Control of corruption leads to government effectiveness. The
rule of law leads to control of corruption, and government effectiveness
to political stability. Additionally, there is a bidirectional homogeneous
causality between the rule of law and political stability. Thus, the research
found some empirical evidence that stronger institutional measures cause
higher economic growth.

Item Type:	Article
Additional Information:	COBISS.ID=6847625
Uncontrolled Keywords:	causality, economic growth, government effectiveness, corruption, political stability, rule of law
Research Department:	Macroeconomics
Depositing User:	Jelena Banovic
Date Deposited:	30 Dec 2021 15:07
Last Modified:	30 Dec 2021 15:07
URI:	http://35.240.28.64/id/eprint/1687
Author Links:	[error in script] No links available.

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