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Comparative analysis of the quality of European institutions 2003-2009: convergence or divergence?

  • Kresimir Jurlin

    (Institute for International Relations, Zagreb)

  • Nevenka Cuckovic

    (Institute for International Relations, Zagreb)

This paper gives a comparative cross-country analysis of the quality of the institutional framework that underpins economic governance in European countries. The paper attempts to identify the trends of change in the quality of institutions and determine if there is a convergence in the quality of EU institutions. The countries included in the analysis are selected groups of EU countries and the Western Balkan Countries. The analysis is based on the results of the executive officers’ opinion surveys conducted by the World Economic Forum for the Global Competitiveness Index 2003-2009. In order to identify the relative quality of public institutions and the trend towards convergence/divergence for different clusters of EU countries, a three-pillar composite indicator of institutional quality was constructed from available WEF indicators. The analysis was conducted at the aggregated level as well as for individual countries and pillars, measured in terms of difference to an average rank of survey response in the EU-14 + EU-8 members.

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Article provided by Institute of Public Finance in its journal Financial Theory and Practice.

Volume (Year): 34 (2010)
Issue (Month): 1 ()
Pages: 71-98

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Handle: RePEc:ipf:finteo:v:34:y:2010:i:1:p:71-98
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  1. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, 06.
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  4. Olson, Mancur, Jr & Sarna, Naveen & Swamy, Anand V, 2000. " Governance and Growth: A Simple Hypothesis Explaining Cross-Country Differences in Productivity Growth," Public Choice, Springer, vol. 102(3-4), pages 341-64, March.
  5. Iain Begg, 2008. "Economic governance in an enlarged euro area," European Economy - Economic Papers 311, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  6. Knack, Stephen, 2006. "Measuring corruption in Eastern Europe and Central Asia : a critique of the cross-country indicators," Policy Research Working Paper Series 3968, The World Bank.
  7. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2007. "The worldwide governance indicators project : answering the critics," Policy Research Working Paper Series 4149, The World Bank.
  8. Andrew Williams & Abu Siddique, 2008. "The use (and abuse) of governance indicators in economics: a review," Economics of Governance, Springer, vol. 9(2), pages 131-175, May.
  9. Hausmann, Ricardo & Pritchett, Lant & Rodrik, Dani, 2004. "Growth Accelerations," Working Paper Series rwp04-030, Harvard University, John F. Kennedy School of Government.
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