Acta academica karviniensia 2014, 14(1):96-107 | DOI: 10.25142/aak.2014.010

THE INFLUENCE OF THE INSTITUTIONAL ENVIRONMENT ON THE COMPETITIVENESS OF CROATIA AND SERBIA BETWEEN 2000 - 2010

Michal Mádr1, Luděk Kouba2
1 Mendelova univerzita v Brně, Provozně ekonomická fakulta, Zemědělská 1, 613 00 Brno, Email: xmadr@mendelu.cz
2 Mendelova univerzita v Brně, Provozně ekonomická fakulta, Zemědělská 1, 613 00 Brno, Email: kouba@mendelu.cz

This article deals with a comparison of the impact of institutional environment on the competitiveness of Croatia and Serbia between 2000 and 2010. After 2000, both states began to implement institutional and economic reforms. Institutional environment is measured and evaluated by concept Governance Matters of World Bank. Because of limited extent of the text, two indicators of the Governance Matters concept - the level of political stability and the level of rule of law - were chosen for a deeper analysis. Competitiveness is determined by the World Competitiveness Index of World Economic Forum. The paper concludes that institutional environment is a weakness of both countries and the slow dynamics of institutional change is, in accord with new institutional economics and new political economy one of the reasons why both countries have had slow growth of competitiveness and in global comparison have fallen behind.

Keywords: Balkan, competitiveness, Croatia, institutional environment, political stability, rule of law, Serbia
JEL classification: B52, E02, P16, P48

Received: October 2, 2012; Accepted: September 11, 2013; Published: March 30, 2014  Show citation

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Mádr M, Kouba L. THE INFLUENCE OF THE INSTITUTIONAL ENVIRONMENT ON THE COMPETITIVENESS OF CROATIA AND SERBIA BETWEEN 2000 - 2010. Acta academica karviniensia. 2014;14(1):96-107. doi: 10.25142/aak.2014.010.
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