Evaluation of Institutions in Innovation-driven Economies
Economic Science for Rural Development. No.40: 16th International Scientific Conference "Economic Science for Rural Development" 2015
Alise Vītola, Maija Šenfelde

The aim of the paper is to quantitatively evaluate the quality of institutions in innovation-driven economies. First, the authors define institutions as socially approved behaviour models that restrict the rationality of an individual and constrain or encourage specific behaviour and classify institutions into two groups - governance institutions and value institutions. Secondly, the authors propose and implement an innovative and consistent yet simple and informative methodology for quantitative evaluation of institutions. The core of the methodology is the Institution Index Matrix that combines Institution Index and Institutional Potential Index in a single framework, where the level of quality of institutions is placed on X axis and the results of policies that facilitate growth-friendly institutions– on the Y axis.To measure the quality of institutions several World Bank’s World Development and Worldwide Governance Indicators are used as well as the results from the World Value Survey. The analysis confirms that the leaders regarding the quality of institutions are the Nordic countries, Western European countries and New Zealand, Canada, the United States and Australia and the laggards - Southern, Central and Eastern European countries as well as Hong Kong, Chile and Israel. The low quality of institutions might impede the economic convergence. Finally, the authors provide a detailed analysis of the institutional environment in the countries with the worst institution indicators and propose solutions for the development of growth-friendly institutions in these countries. Research results can be applied to global development policies and regional development policies in geo-political regions.


Atslēgas vārdi
institutions, institutional arrangements, governance, economic development
Hipersaite
http://www.esaf.llu.lv/getfile.php?id=1163

Vītola, A., Šenfelde, M. Evaluation of Institutions in Innovation-driven Economies. No: Economic Science for Rural Development. No.40: 16th International Scientific Conference "Economic Science for Rural Development", Latvija, Jelgava, 23.-24. aprīlis, 2015. Jelgava: Latvia University of Agriculture, 2015, 94.-103.lpp. ISBN 978-9984-48-183-8. ISSN 1691-3078. e-ISSN 2255-9930.

Publikācijas valoda
English (en)
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