engleski

Inequalities in the EU and the Role of Institutions

The Cohesion policy has been one of the objectives of the European Union since the Treaty of Rome in 1957. Although, convergence is an essential goal of the European Union, investigating the dynamics of the convergence process has provided mixed and contradictory results. The potential explanation is the fact that European regional strategies have overlooked one of the significant determinants of the growth process. Taking into consideration that the unsuccessful recipe for greater economic and social cohesion in Europe has included greater investment in infrastructure, education, innovation and industrial activities, we test the role of institution quality, as a new determinant, for regional growth imbalances. The research extends the literature in two directions. First, it tackles the importance of institutional quality for regional inequalities in EU and second tries to recognize which dimension of the institutional quality is important for pattern of regional imbalances by using index proposed by World Bank, Worldwide Governance Indicator (WGI). The results confirm the importance of institutions for inequalities in the EU and expose that key dimensions important for regional growth imbalances are presented by Voice and accountability indicator, Rule of Law indicator and Control of Corruption indicator. Confirmation of the these indicators shows that for regional growth inequalities are the most important processes that elevate the respect of citizens and the state for the institutions that govern economic and social interactions among them Process which boots the capacity of the government to effectively formulate and implement sound policies has showed not significant for regional growth inequalities pattern.

Regional inequalities ; institutions ; European Union ; World government indicator

Navedeni rad je prihvaćen za objavu pod nazivom Inequalities in the EU and the Role of Institutions u međunarodnom časopisu International Journal of Urban and Regional Research