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The Rule of Law and Economic Growth in the Balkan States

Author

Listed:
  • Michaela Ftoreková

    () (Mendel University in Brno, Czech Republic)

  • Michal Mádr

    () (Mendel University in Brno, Czech Republic)

Abstract

The main aim of the paper is to evaluate whether the rule of law affects economic growth in the Balkan states. The reference period is the period 2000-2015 due to data availability. As indicators of the legal environment the Rule of Law Index (the Worldwide Governance Indicators) and Property Rights Index (the Index of Economic Freedom) are employed. The paper uses panel data regression analysis (OLS with fixed effects) for the purpose of identification and quantification. The results indicate that improvement of the rule of law has not statistically significant effect on growth in the Balkan countries. On the other hand, the higher level of property rights might support economic development in the countries, but simultaneously the positive changes prove to be in five-year horizon.

Suggested Citation

  • Michaela Ftoreková & Michal Mádr, 2017. "The Rule of Law and Economic Growth in the Balkan States," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 3(1), pages 13-20, October.
  • Handle: RePEc:men:journl:v:3:y:2017:i:1:p:13-20
    DOI: https://doi.org/10.11118/ejobsat.v3i1.76
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    File URL: https://journal.ejobsat.cz/index.php/ejobsat/article/download/76/pdf_37
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    transition economies; economic growth; rule of law;

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy

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