Acta academica karviniensia 2017, 17(1):65-75 | DOI: 10.25142/aak.2017.006

THE IMPORTANCE OF GOVERNANCE QUALITY FOR ECONOMIC GROWTH IN POST-SOVIET COUNTRIES

Radek Náplava1, Luděk Kouba2
1 Mendelova univerzita, Provozně ekonomická fakulta, Zemědělská 1, 613 00 Brno, Email:radnap@email.cz
2 Mendelova univerzita, Provozně ekonomická fakulta, Zemědělská 1, 613 00 Brno, Email:ludek.kouba@mendelu.cz

The purpose of this paper is to address a relation between governance quality and long-run growth using a case of post-soviet transition countries. Alternative approaches to the growth theory emphasize the role of formal institutions, in particular, political and economic institutions. Based on literature overview, a positive effect of governance quality can be assumed. Governance quality is represented by concept of World Bank's Governance Matters and its influence is estimated within panel data analysis. The results confirm the assumptions. Furthermore, they indicate the importance of political stability and negative impact of voice and accountability.

Keywords: Economic Growth, Formal Institutions, Governance Matters, Panel Data Analysis, Post-soviet Countries
JEL classification: O43, P48

Received: January 5, 2017; Accepted: March 1, 2017; Published: March 30, 2017  Show citation

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Náplava R, Kouba L. THE IMPORTANCE OF GOVERNANCE QUALITY FOR ECONOMIC GROWTH IN POST-SOVIET COUNTRIES. Acta academica karviniensia. 2017;17(1):65-75. doi: 10.25142/aak.2017.006.
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