Institutions as a Prerequisite for Growth: Projections and Policy Implications for North Macedonia
Institutions as a Prerequisite for Growth: Projections and Policy Implications for North Macedonia

Author(s): Tatjana Drangovska, Marica Antovska-Mitev
Subject(s): Economy, National Economy
Published by: Институт за икономически изследвания при Българска академия на науките
Summary/Abstract: The New Institutional Economics assigns a significant role to institutions within long-term economic development models. In the context of sustainable development, institutions are regarded as the fourth component, and the development of the institutional system is considered a prerequisite for steering national economies toward sustainable growth paths. This paper aims to examine the role of institutions in fostering economic growth, with a specific focus on North Macedonia. The quality and capacity of institutions in North Macedonia are assessed using selected international indicators, including the Worldwide Governance Indicators (WGI), the Corruption Perceptions Index (CPI) etc. In light of the identified weaknesses within the country’s institutional system, the paper presents macroeconomic projections that outline North Macedonia’s potential development trajectory over the next two decades, assuming the implementation of reforms in key institutional areas.

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