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Institutional Development and Good Governance Assessments in Croatia: An Extended Focus on Corruption

Author

Listed:
  • Zoran Aralica

    (Institute of Economics, Zagreb, Croatia)

  • Jelena Budak

    (Institute of Economics, Zagreb, Croatia)

Abstract

This paper examines good governance assessments in Croatia and in selected CEE countries. It aims to confirm that the quality of governance should be evaluated by considering phenomena- or country-specific institutional environment. Based on the analysis of good governance indicators slight improvements in all dimensions of good governance for all of the selected countries were observed in a period from 1996 to 2002. Using constructed aggregate Good Governance Index (GGI) and Human Development Index (HDI) tested the general assumption that good governance is connected to economic and social development. Spearman rank order correlation analysis confirmed that for all selected countries in 2000 there was a high positive correlation between their GGI rank and HDI rank. The correlation matrix for CEE countries in 2000 confirmed our hypothesis that government effectiveness; regulatory quality and rule of law positively correlate with control of corruption. The paper concludes that research on interdependencies among good governance and development indicators as well as on determinants and effects of good governance dimensions remains to be done for Croatia.

Suggested Citation

  • Zoran Aralica & Jelena Budak, 2004. "Institutional Development and Good Governance Assessments in Croatia: An Extended Focus on Corruption," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 7(Special C), pages 17-34, December.
    • Handle: RePEc:zag:zirebs:v:7:y:2004:i:sci:p:17-34
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    Keywords

    institutional development; good governance; human development; correlation; corruption;
    All these keywords.

    JEL classification:

    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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