Institutional Reform for Investment and Growth in South Eastern Europe
This study analyses the institutional impediments to investment and growth in SEE and suggests ‘second generation’ policy reforms to ease these constraints. Chapter one reviews the recent trends in the economies of the eight countries that comprise...
| Main Authors: | , , , , , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/960451486542399588/Institutional-reform-for-investment-and-growth-in-South-Eastern-Europe http://hdl.handle.net/10986/26037 |
| Summary: | This study analyses the institutional
impediments to investment and growth in SEE and suggests
‘second generation’ policy reforms to ease these
constraints. Chapter one reviews the recent trends in the
economies of the eight countries that comprise the region
(SEE8) and their prospects for international and
intra-regional integration. It conveys the message that a
favorable institutional framework for domestic and foreign
investment is essential to achieve sustainable growth in
SEE. The chapter presents the scope, methodology, and the
approach the study undertakes for assessing the role of key
market institutions in SEE business development. The
analysis utilizes not only traditional, official data from
the eight countries to assess the characteristics, trends
and relationships between these institutions, but also
employs data from a set of 40 original enterprise-level
business case studies carried out in each of the eight
countries and the two rounds of the Business Environment and
Enterprise Performance Survey (BEEPS) conducted in 1999 and
2002. The study focuses on four institutions that relate
fundamentally to the efficient operation of market
incentives in an economy: (i) inter-enterprise competition
and economic barriers to entry/exit, (ii) access to
(regulated) utilities and infrastructure services, (iii)
corporate governance, financial transparency and access to
finance, and (iv) commercial dispute resolution. The
methodological tools employed in the analysis investigate
these institutions systematically across the eight SEE
countries to allow for cross-country and cross-sectoral
comparisons, and to develop a regional as well as a
country-specific perspective on corresponding policy
challenges. Chapter two presents an overview assessment of
each of the four core issues of this study. It reviews in
the aggregate the business environment in the eight
countries, based on BEEPS (1 and 2) and the EBRD transition
indicators. The remaining sections of this overview present
a summary of the main findings of each of the four core
chapters of the study: competition, regulated infrastructure
utilities, corporate governance and finance, and commercial
dispute resolution. |
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