Rule of law, regulation and economic performance in Kosovo: An empirical analysis
Session
Law
Description
The institutional environment forms the framework within which individuals, firms and government interact to generate income and wealth in the economy. Rule of law and regulatory framework has a strong bearing on competitiveness and economic performance. It plays a central role in the ways in which societies distribute the benefits and bear the costs of policies, investment, human capital, productivity and organization of production. Owners of land, corporate shares and intellectual property are unwilling to invest in the improvement of their property if their rights as owners are insecure. Of equal importance, if property cannot be sold and bought with confidence that authorities will endorse the transaction, the market itself will fail to generate investments and growth respectively. The literature on the impact of rule of law and regulatory framework on economic performance in Kosovo has been scant at best. This paper employs an empirical analysis of the nexus between improvements in rule of law and regulation on economic performance in Kosovo from 1998-2018. It finds that rule of law and regulation are not only important as enablers of growth but also can explain economic performance in a statistically significant way.
Keywords:
Kosovo, economic performance, rule of law, regulation
Session Chair
Joana Qeleshi
Session Co-Chair
Jorida Xhafaj
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-437-69-1
Location
Pristina, Kosovo
Start Date
27-10-2018 10:45 AM
End Date
27-10-2018 12:15 PM
DOI
10.33107/ubt-ic.2018.267
Recommended Citation
Tahiri, Artan and Haxhiu, Miranda, "Rule of law, regulation and economic performance in Kosovo: An empirical analysis" (2018). UBT International Conference. 267.
https://knowledgecenter.ubt-uni.net/conference/2018/all-events/267
Rule of law, regulation and economic performance in Kosovo: An empirical analysis
Pristina, Kosovo
The institutional environment forms the framework within which individuals, firms and government interact to generate income and wealth in the economy. Rule of law and regulatory framework has a strong bearing on competitiveness and economic performance. It plays a central role in the ways in which societies distribute the benefits and bear the costs of policies, investment, human capital, productivity and organization of production. Owners of land, corporate shares and intellectual property are unwilling to invest in the improvement of their property if their rights as owners are insecure. Of equal importance, if property cannot be sold and bought with confidence that authorities will endorse the transaction, the market itself will fail to generate investments and growth respectively. The literature on the impact of rule of law and regulatory framework on economic performance in Kosovo has been scant at best. This paper employs an empirical analysis of the nexus between improvements in rule of law and regulation on economic performance in Kosovo from 1998-2018. It finds that rule of law and regulation are not only important as enablers of growth but also can explain economic performance in a statistically significant way.