Building institutions for growth and human developement : an economic perspective applied to transitional countries of Europe and CIS

The collapse of the communist system during the late 1980’s redefined the hierarchy among Central and Eastern European Countries (CEECs) and the former USSR. Some of these countries joined the EU ; some did not ; others formed the CIS . In particular, institutions, mainly market and political one, appear to be a strong foundation for a rapid but irreversible shift from socialism to market-oriented economy. The relationship between economic performance and the quality of domestic institutions has emerged recently as a major subject of interest. The literature shows that the higher the quality of domestic institutions the better the effects on the Human development and growth of a country. The aim of this paper is to analyse in a more qualitative way the role of institutions in transitional countries in the CEECs and CIS. The main question we address is: what kind of institutional arrangement leads to Human development? We propose an analytical pattern where global performance (i.e. Human development) is the final outcome of a new institutional arrangement

Building institutions for growth and human developement : an economic perspective applied to transitional countries of Europe and CIS

The collapse of the communist system during the late 1980’s redefined the hierarchy among Central and Eastern European Countries (CEECs) and the former USSR. Some of these countries joined the EU ; some did not ; others formed the CIS . In particular, institutions, mainly market and political one, appear to be a strong foundation for a rapid but irreversible shift from socialism to market-oriented economy. The relationship between economic performance and the quality of domestic institutions has emerged recently as a major subject of interest. The literature shows that the higher the quality of domestic institutions the better the effects on the Human development and growth of a country. The aim of this paper is to analyse in a more qualitative way the role of institutions in transitional countries in the CEECs and CIS. The main question we address is: what kind of institutional arrangement leads to Human development? We propose an analytical pattern where global performance (i.e. Human development) is the final outcome of a new institutional arrangement.Transition; CIS; Institutions; Human Development; Growth

Inward FDI in seven transitional countries of South-Eastern Europe: a quest of institution-based attractiveness

The main question we address is whether the weak FDI level in the SEE-7 is linked to ill-adapted institutions or not. In order to answer it, we need to understand the role of institutions in shaping a strong localization advantage for FDI. We develop a theoretical framework to understand the relationship between Transition, Institutions and inward FDI. We assume that the ability to attract FDI depends on the local institutional arrangement. We present our pattern of institutional arrangement that may help us understand why, in spite of identical institutions, countries attract a different level of FDI. We split the SEE into two categories of host countries, each category being characterized by a specific institutional arrangement and level of FDI. We conclude with the relevance of our proposition to develop an analytical framework where FDI is the outcome of a new and well-adapted institutional arrangementFDI, transition, institutions, attractiveness, South-Eastern Europe, institutional arrangement

FDI in the New European Neighbours of Southern Europe: a quest of institutions-based attractiveness

Why the “New European Neighbours” at the South East of Europe, after more than 10 years of transition and European Neighbourhood Policy (ENP), are not sufficiently attractive for inward Foreign Direct Investment (FDI)? The experience of Central and Eastern European Countries has shown that the access to the EU membership can be positively pushed by the European Neighborhood Policy and inward-FDI. On the one hand, ENP can be a supportive framework for improving the investor’s confidence. ENP Instruments can add more coherence in technical assistance; provide more financial support for creating capacities for trade, improve infrastructures, and contribute to the institutional and private sector development. On the other hand, inward-FDI may help to achieve modernization, industrial upgrading and improve productivity by importing foreign technologies, diffusing knowledge and western best practices. Southern European Transition Countries lack of a strong convergence process to the EU Standard probably because of an unclear accession date to the EU and of the Balkan Civil War. The aim of this paper is to understand the role of institutions in shaping a strong localization advantage for FDI. The quest of reliable and safe institutions has recently emerged in the economic literature, first as a catalyst for growth and more recently as an inward-FDI attractor mainly in transition economies. Contrary to the New Institutional School, we argue that institutions are not pre-condition to FDI but the result of an interaction between host countries and foreign investors. Such an institutions-based attractiveness could help the Southern European Transition Countries to become a new frontier for FDI in the future.FDI Institution Attractiveness Southern European transition Countries

Building institutions for growth and human development: an economic perspective applied to the transitional countries of Europe and CIS

The aim of this paper is to analyse in a more qualitative way the role of institutions in transitional countries in the CEECs and CIS. The main question we address is: what kind of institutional arrangement leads to Human development? We propose an analytical pattern where global performance (i.e. Human development) is the final outcome of a new institutional arrangement.Institution, Transition, Human Development, Growth