engleski

Institutions as a factor of (regional) growth and development

Regional differences became frequent problem of all countries regardless of their development level. However, there are significant disproportions between level differences of a specific country. Many European Union country members are concerned with significant regional differences as well as differences of their national level. Regional defferences determination is usually performed according to economic criteria (for example, GDP, unemployment rate in working-age population, revenues within local government, investments, extraction for education in GDP, foreign direct investments, etc.). However, taking into consideration just the economic indicators most of the time does not give a unique response when considering the causes of created differences. Therefore, the aim of the paper is determining the institutional impact as noneconomic indicator in growth and development differences –in and –between countries. In this paper institutions are considered to be comprised in North definition (2003:13) according to which „institutions are the rules of behavior in a society, or more formally speaking, the restrictions on which man has figured out how to shape human interaction”. Economic criteria directionality of differences monitoring is usually related with economic growth. But, development comprises wider indicator spectar reflecting a welfare of a specific country. Examples of differences – between and within – certain country/ies is going to be a frame for displaying de facto situation. Besides, as growth and development are cine qua non components of every country, researching and contribution of institutions is a necessity. Institutional performance of formal and informal institutions significantly differs. According to predominance of specific institutional form, it is possible different guidance of institutional impact. The purpose of the paper, according to institutional activity frame in specific country, is to record the influence on economic development of specific territory (region) or economy as a whole.

formal institutions ; informal institutions ; economic growth ; economic development ; regional disparities

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