Prethodno priopćenje
https://doi.org/10.22598/iele.2025.12.1.5
THE RELATIONSHIP BETWEEN ECONOMIC GROWTH AND THE RULE OF LAW
Török László
orcid.org/0000-0003-1924-215X
; Faculty of Engineering, Industrial Process Management Institute, University of Debrecen, Debrecen, Hungary
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* Dopisni autor.
Sažetak
Economic growth is of fundamental importance for citizens and businesses of national economies, as it forms the basis for increasing prosperity. Without an appropriate legal environment, national economies struggle to achieve economic growth. The study, focusing on the European Union, examines the close relationship between economic growth and the rule of law in EU Member States in 2012-2022. The study uses Pearson correlation, classical clustering, and regression analysis. The results of both analyses show no robust and linear relationship between economic growth and the rule of law in EU Member States. The previous finding means that in those Member States that achieved higher economic growth, the level of rule of law did not necessarily increase during the period under study and vice versa. The results of the multivariate analysis show that although the rule of law alone did not robustly determine GDP growth, it appears as a relevant factor together with other factors (in interaction). Another study result is that the initial state of the national economy under study is decisive in the growth of GDP production because it is relatively more straightforward to achieve more dynamic growth from a lower GDP. The policy recommendation of the study is that the EU should consider that, although the direct impact of the rule of law on GDP has not been proven to be strong, maintaining the rule of law is essential for long-term economic stability and investment.
Ključne riječi
economic growth; rule of law; European Union; correlation; clusters
Hrčak ID:
332616
URI
Datum izdavanja:
24.6.2025.
Posjeta: 516 *