Institutional Environment, Corruption and Their Impact on Economic Growth

Abstract

Factors of production (labour, land, capital), technology and technical progress are usually cited as the main sources of economic growth and development. However, there are a number of other factors that have a significant impact on the possibilities and extent of their use or their further improvement and development. These factors undoubtedly include the institutional environment, within which corruption is also a consideration. In this chapter, attention will be focused on the various institutional variables that are used to assess the quality of a country's institutional environment, including corruption. A number of studies have shown that a quality institutional environment and low levels of corruption are prerequisites for long-term economic growth. Using an analysis of individual indicators of the Worldwide Governance Indicators (WGIs), published annually by the World Bank, supplemented by the Corruption Perception Index (published by Transparency International), we look at where Czechia has moved over the last decade or two in terms of institutional quality and corruption.

Citation

Kotlánová, E. (2024), "Institutional Environment, Corruption and Their Impact on Economic Growth", Stavárek, D. and Tvrdoň, M. (Ed.) Modeling Economic Growth in Contemporary Czechia (Entrepreneurship and Global Economic Growth), Emerald Publishing Limited, Leeds, pp. 215-230. https://doi.org/10.1108/978-1-83753-840-920241014