The quality of governance and economic growth in Croatia
AbstractThe objective of this paper is to show the justification and importance of explicit inclusion of quality of governance in the debate on economic growth in Croatia. Governance is defined as the manner in which the state employs its power in handling the institutional environment, thus affecting the accumulation of economic growth factors. Although there are numerous elements in the quality of governance, this paper places the emphasis on the whole on two of them: the rule of law and the quality of the public administration. In pursuit of its objective, the paper first of all considers the links between governance and economic growth in growth theory and empirical research to date. After that an econometric (panel) analysis of quality of governance and economic growth on a sample of EU countries and Croatia, Bulgaria and Romania (EU accession candidate countries) is performed, and then changes in the quality of governance in Croatia are considered. From a comparison of the values of indicators of the rule of law and quality of the public administration, and the dynamics and nature of reform in the administration of justice and the civil service, it appears that those in whom power is vested in Croatia are more focused on rent-seeking than is the case in the average of EU countries. Institutional shortcomings have affected the current level of real per capita GDP in Croatia, and more rapid and effective reforms of the justice and public administration sectors, as well as fighting corruption and boosting democracy (as mechanism for controlling those in whom power is vested) would have a positive effect on future economic growth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Institute of Public Finance in its journal Financial Theory and Practice.
Volume (Year): 29 (2005)
Issue (Month): 4 ()
governance; economic growth; Croatia; rule of law; public administration;
Find related papers by JEL classification:
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Luc Moers, 1998. "Growth Empirics with Institutional Measures and its Application to Transition Countries: A Survey," Tinbergen Institute Discussion Papers 98-126/2, Tinbergen Institute.
- Acemoglu, Daron & Johnson, Simon & Robinson, James A, 2004.
"Institutions as the Fundamental Cause of Long-Run Growth,"
CEPR Discussion Papers
4458, C.E.P.R. Discussion Papers.
- Daron Acemoglu & Simon Johnson & James Robinson, 2004. "Institutions As The Fundamental Cause Of Long-Run Growth," DOCUMENTOS CEDE 002889, UNIVERSIDAD DE LOS ANDES-CEDE.
- Daron Acemoglu & Simon Johnson & James Robinson, 2004. "Institutions as the Fundamental Cause of Long-Run Growth," NBER Working Papers 10481, National Bureau of Economic Research, Inc.
- Nauro F. Campos & Abrizio Coricelli, 2002.
"Growth in Transition: What We Know, What We Don't, and What We Should,"
Journal of Economic Literature,
American Economic Association, vol. 40(3), pages 793-836, September.
- Nauro F. Campos & Fabrizio Coricelli, 2002. "Growth in Transition: What We Know, What We Don't, and What We Should," William Davidson Institute Working Papers Series 470, William Davidson Institute at the University of Michigan.
- Campos, Nauro F & Coricelli, Fabrizio, 2002. "Growth in Transition: What we Know, What we Don't and What we Should," CEPR Discussion Papers 3246, C.E.P.R. Discussion Papers.
- Feld, Lars P. & Voigt, Stefan, 2003.
"Economic growth and judicial independence: cross-country evidence using a new set of indicators,"
European Journal of Political Economy,
Elsevier, vol. 19(3), pages 497-527, September.
- Lars P. Feld & Stefan Voigt, 2003. "Economic Growth and Judicial Independence: Cross Country Evidence Using a New Set of Indicators," CESifo Working Paper Series 906, CESifo Group Munich.
- Campos, Nauro F., 2000. "Context is everything : measuring institutional change in transition economies," Policy Research Working Paper Series 2269, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Martina Fabris).
If references are entirely missing, you can add them using this form.