INSTITUTITONS AND ECONOMIC DEVELOPMENT
THEORETHICAL PERSPECTIVE OF MISSED INSTITUTIONAL SUPPORT IN THE REPUBLIC OF CROATIA
DOI:
https://doi.org/10.25234/pv/12250Keywords:
institutions, economic development, primary sector, family farmsAbstract
The activities of institutions have proven to be extremely important in achieving the economic growth and development of national economies. In addition, observed imbalances within the national economy can be minimized due to the contribution of institutions. Therefore, it is necessary to detect opportunities and activities that could, due to adequate institutional implementation, promote the development of a certain area. In the Republic of Croatia, in general, there is a low level of stimulating environment for small and medium sized enterprises as one of the economy drivers. Besides, the parts of the Republic of Croatia in which the primary sector predominates are generally much less developed (for instance, counties of Eastern Croatia). The aim of this paper is to examine the role and importance of institutions on economic development. In addition, it aims at detecting and describing the institutional obstacles in promotion of small and medium enterprises as well as in presenting the selected examples of missed institutional promotion within the primary sector, as an economic branch most represented in the parts of the Republic of Croatia whose development is much lower than the average or even the lowest. The paper predominantly uses theoretical descriptive methods with additional data given in order to confirm mentioned obstacles within the small and medium enterprises and primary sector.
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