Abstract
This research aims to study the role of institutions in promoting employment and economic growth for a sample of eight Balkan countries over the period 2000–2022. Based on the cointegration technique by Pedroni (2004), fully modified ordinary least squares (FMOLS) and the dynamic ordinary least squares (DOLS) method by Kao and Chiang (2001) determined the potential long-run relationship between variables. The results suggest the existence of a positive and significant relationship between institutions and economic growth. We also found that education supported growth, and unemployment has restricted growth. The conclusion is that further improving institutional quality and education is necessary for supporting growth and employment.
Reference58 articles.
1. Abu-Ismail, K., & Ishak, P. W. (2021). Institutions and human development: A panel granger causality analysis. Economic and Social Commission for Western Asia. https://tinyurl.com/y3335ft3
2. Acemoglu, D., & Robinson, J. (2010). The role of institutions in growth and development. Review of Economics and Institutions, 1(2), Article 1. https://rei.unipg.it/rei/article/view/14/22
3. Acquah, E., Carbonari, L., Farcomeni, A., & Trovato, G. (2023). Institutions and economic development: New measurements and evidence. Empirical Economics, 65, 1693–1728. https://doi.org/10.1007/s00181-023-02395-w
4. Aron, J. (2000). Growth and institutions: A review of the evidence. The World Bank Research Observer, 15(1), 99–135. https://doi.org/10.1093/wbro/15.1.99
5. Aslam, A., Naveed, A., &·Shabbir, G. (2021). Is it an institution, digital or social inclusion that matters for inclusive growth? A panel data analysis. Quality & Quantity, 55, 333–355. https://doi.org/10.1007/s11135-020-01008-3