The Role of Institutions in Socio-Economic Development

14th EBES Conference Proceedings (CD) 2014
Alise Vītola, Maija Šenfelde

The aim of the paper is to quantitatively evaluate the impact of institutions on the socioeconomic development on a global scale and in factor-driven, efficiencydriven and innovation-driven economies. We define institutions as socially approved behaviour models that restrict the rationality of an individual and constrain or encourage specific behaviour and classify institutions into three groups - economic institutions, political institutions and value institutions. The regression analysis confirms that institutions play an important role in socioeconomic performance. But the importance of specific institutions depends on the socioeconomic development level of the economy. Results of the research can be applied to global development policies for less developed countries, as well as regional development policies for geo-political regions, e.g. the European Union.

Keywords
Institutions, institutional arrangements, governance, values, economic development
Hyperlink
https://www.ebesweb.org/Conferences/14th-EBES-Conference-Barcelona.aspx

Vītola, A., Šenfelde, M. The Role of Institutions in Socio-Economic Development. In: 14th EBES Conference Proceedings (CD), Spain, Barcelona, 23-25 October, 2014. Barcelona: EBES, 2014, pp.3206-3215.

Publication language
English (en)