Original scientific paper

https://doi.org/10.18045/zbefri.2024.2.3

Institutions and economic growth in European post-transition economies

Predrag Trpeski orcid.org/0000-0003-2454-6342 ; Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje
Gunter Merdzan orcid.org/0000-0002-1894-9623 ; Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje
Kristijan Kozeski ; Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje

Abstract

This paper discusses the role of institutions in economic growth in selected European post-transition economies. During the 1990s, Central and Eastern European countries faced challenges adapting their political and economic systems to keep up with a rapidly changing global landscape. They needed new institutions like regulations, social norms, and organisations to support a capitalist economy. These institutions provide a framework for economic activity and guide individuals to act in ways that align with economic goals. They are crucial for creating a stable environment for economic growth, promoting investment and innovation, and reducing uncertainty, which is essential for economic success. To analyse this, we conduct an econometric analysis of 16 European post-transition countries from 1998-2019 using fixed-effect, Arellano and Bond’s first difference
GMM estimator, and the system GMM estimator. The results indicate that institutions significantly impact economic growth.

Keywords

institutions, economic growth, European post-transition countries

Hrčak ID:

325020

URI

https://hrcak.srce.hr/325020

Publication date:

23.12.2024.

Visits: 0 *