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Theoretical and Applied Economics
No. 3 / 2017 (612), Autumn

Does institutional environment affect the economic development? Evidence from selected CEE countries

Lejla TERZIĆ
University of East Sarajevo, Faculty of Economics Brčko, Bosnia and Herzegovina

Abstract. Economic theory identifies different variables, affecting economic development. Many economists and analysts focused their research from the determinants in the neoclassical economic growth model to the three rooted variables of economic development: institutions, geography and openness to trade. Aim of this paper is to investigate linkage between institutional environment and economic development in the selected Central and Eastern European countries (CEE). In order to explore relationship of the “deep determinants” of economic development to institutional environment several methodological approaches have been used. Empirical research was accomplished via SPSS 21 statistical software package. The results indicate the significance of institutional environment for future economic development.

Keywords: data, economic development, institutional environment, CEE countries.

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The Economicity. The Epistemic Landscape, Marin Dinu, 2016

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