INSTITUTIONAL CHANGES IN EMERGING EUROPE

Abstract

The recent global economic crisis has created new conditions and situations for the economic environment and therefore, in this context the rethinking of the institutional system is mandatory.

The present paper seeks to propose an empirical model and aims at capturing the interdependencies between the institutional changes and the economic progress in the European emerging countries, in order to emphasize that institutions are the key elements in the process of economic growth. After briefly reviewing the most relevant literatures that have documented the variety of the institutional changes, the paper focuses on the amplitude of the phenomena of institutional changes from the  European emerging countries. The research tries to establish a “stimulus – effect” relationship between the changing of the institutional environment and the rate of economic growth and human development.

The conclusions for the methodological aspects illustrate that the level of social and economic development is a natural result of the quality of the institutional environment.