Theoretical and Applied Economics
No. 4 / 2025 (645), Winter
Assessing the relationship between institutions and economic development
Bucharest University of Economic Studies, Romania
Corina-Zenita BUZATU
Bucharest University of Economic Studies, Romania
Ionuț JIANU
Bucharest University of Economic Studies, Romania
Abstract. This paper explores how institutional quality influences economic development across EU Member States. Using 2022 data from Eurostat and the World Bank, we analyzed the relationship between institutional indicators (such as voice and accountability, political stability and absence of violence/terrorism, government effectiveness, regulatory quality, rule of law, control of corruption) and GDP per capita expressed in purchasing power standard (PPS). In this respect, we examined the correlation coefficients, which confirmed a strong link between institutions and economic performance. Northern European Union countries show both institutional strength and prosperity, while many Eastern and Southern European nations face weaker institutions and lower development. This study also assesses the institutional progress within the EU from 2013 to 2022.
Contents
Dynamic risk spillovers in European Stock Markets: a TVP-VAR Approach
Co-movement and causality among exchange rates: a wavelet analysis
Financial development and economic growth in emerging economies: the mediating role of entrepreneurship
House prices and macroprudential policy in the Romanian economy: evidence from a BVAR analysis
The impact of short-run and long-run dynamics on manufacturing sector development in Indonesia and Malaysia
Purchasing Power Parity theory in exchange rate determination: evidences from the G-20 nations
Assessment of external macroeconomic imbalances in Romania
Remittances and domestic demand: evidence from Romania
How do energy consumption, natural resources, trade openness and FDI affect environmental quality in Algeria? Fresh insights from the novel DYNARDL simulations and KRLS approach
The acceleration of education: professors, AI platforms and the transformation of learning and human growth
Poverty, unemployment, and mental health: differential impacts among university graduates in Kenya, South Africa, Uganda, and Zambia
Assessing the relationship between institutions and economic development
Cedi depreciation and petroleum price shocks: economic interlinkages and macroeconomic implications
Effects of climate change on food security and sustainable development in Saudi Arabia: Autoregressive Distributed Lag approach
Corruption in digital environments
Beyond linearity: an ARDL threshold analysis of inflation's impact on Tanzania's economic growth from 1994 to 2024
Sustainable consumption and experimental economics – a bibliometric analysis
Heterogeneous and dynamic impacts of growth, urbanization, deforestation, and energy intensity on environmental degradation in Africa using the MM-Quantile regression method
Institutional governance in developing countries, political factors as drivers of institutional change: evidence from sub-Saharan Africa