Title: Institutional development and good governance assessments in Croatia: an extended focus on corruption

Authors: Zoran Aralica, Jelena Budak

Addresses: Institute of Economics, Zagreb, Trg J.F. Kennedy 7, Zagreb 10000, Croatia. ' Institute of Economics, Zagreb, Trg J.F. Kennedy 7, Zagreb 10000, Croatia

Abstract: This paper examines good governance assessments in Croatia and in selected CEE countries from 1996 to 2002. Croatia has a persisting low position compared to other CEE countries. The assumption that good governance is connected to economic and social development was confirmed. For CEE countries, government effectiveness, regulatory quality and rule of law positively correlate with control of corruption. In Croatia, the highest correlation exists between voice and accountability and control of corruption, and between government effectiveness and regulatory quality. The paper analysis developments of Corruption Perception Index for selected CEE countries, where the incidence of corruption in Croatia has been perceived decreasing from 1999 onwards. The results of various surveys were used to provide institutional background of corruption perceptions in Croatia, both at national and local level. The paper concludes that research on determinants and effects of good governance remains to be done for Croatia.

Keywords: institutional development; good governance; Croatia; human development; correlation; corruption; economic development; social development; government effectiveness; regulatory quality; rule of law.

DOI: 10.1504/IJESB.2005.006966

International Journal of Entrepreneurship and Small Business, 2005 Vol.2 No.3, pp.226 - 241

Published online: 29 Apr 2005 *

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