Last modified: 2018-04-10
The Importance of Institutional Quality for Economic Performance in Post-Soviet States
The new institutional economics explains the differences between poor and wealthy countries with institutions. Institutional quality creates the right conditions for long-term economic growth and higher economic performance. The purpose of this paper is to verify this assumption on a sample of post-soviet countries. Institutional quality is represented here by the concept of quality of governance according to the World Bank methodology, which allows a comprehensive assessment of the institutional environment. The results of panel regression with fixed effects confirm the theoretical assumption. Furthermore, they indicate the importance of political stability, government efficiency, the rule of law and the control of corruption.
Formal Institutions; Economic Performance; Post-Soviet Countries; Panel Analysis
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