Импликације владавине права на привредни раст
The Rule Of Law And Its Implications For Economic Growth

Summary/Abstract: The subject matter of this paper is the causal relation between the rule of law, understood as universal protection of private property rights and contract rights, and economic growth. The aim is to examine to what extent the rule of law is important for the increase of per capita income and whether the rule of law is a sufficient condition for that increase. Hence, the author provides an overview of the current theoretical and empirical research on the relation between certain rule of law indicators (primarily the protection of property rights and contract rights, and other related indicators) and economic growth. In particular, the author focuses on the evaluation of the rule of law in our country based on the unique methodology applied by relevant international organizations (the Fraser Institute, the Heritage Foundation, and others) to measure the degree of economic freedom in countries worldwide. The goal is to determine Serbia’s position in the world regarding the protection of property rights and contract rights, examine the implications of the rule of law for economic growth in Serbia and, on these grounds, make specific recommendations to the officials in charge of our economic development policy to institute the reform measures which are necessary for increasing the economic growth rate. The general conclusion is that it is essential to make a sharp turn in our country towards strengthening the rule of law and other components of economic freedom in order to accomplish a long-term economic growth (growth of per capita income).

• Details
• Contents