THE ROLE OF SUSTAINABLE INSTITUTIONS IN PROMOTING ECONOMIC GROWTH IN SOUTHEAST EUROPE

This study analyzes the role and importance of sustainable institutions in promoting economic growth in Southeast European countries. It explores how institutional quality good governance, rule of law, transparency, and anti-corruption efforts affects the region’s economic performance. Institutions are essential for ensuring a stable macroeconomic environment and attracting both domestic and foreign investment. Effective institutions enable fair resource allocation, improve economic efficiency, and build trust in state structures. The study uses secondary data from reliable sources such as the World Bank, IMF, ECB, and Eurostat. It covers the period 2010–2022, a timeframe marked by significant political and economic developments, allowing for a comprehensive analysis of trends. An econometric model and statistical analyses are employed to test the research hypotheses. Findings suggest that improved institutional quality is associated with increased GDP. Political stability and inflation control also contribute positively to growth. Interestingly, in some cases, improved corruption control has had a short-term negative impact on GDP, possibly due to structural adjustments affecting economic activity. The study highlights the impact of institutional quality on economic growth in SEE countries and emphasizes the need for policies that strengthen governance, institutional effectiveness, and anti-corruption measures. The results align with empirical evidence, and the time period analyzed provides a strong basis for drawing relevant conclusions and recommendations.