Institutional and Social Setting – Preconditions for Green Growth for Western Balkan Countries: A Systematic Literature Review

Trajkova Najdovska, Natasha and Sotiroski, Kosta (2023) Institutional and Social Setting – Preconditions for Green Growth for Western Balkan Countries: A Systematic Literature Review. The circular economy: “the number one priority” for the European Green Deal. pp. 198-211.

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Abstract

Green growth has gradually attracted increasing research attention as the problem of
sustainability of the economies receives greater and threatening dimensions. Indeed,
favourable institutional and social environment contributes to green growth from the
perspective of new growth economics. However, rare studies, mostly focused on
developed countries, have systematically and empirically explained the connection
between the institutional and social environment and green growth. The exploration of
Western Balkan Countries that have begun to modestly modify their environmental and
economic policies in order to transition to green economy is at its initial phase of
implementation and research. In this paper, the literature review is performed with the
accent on two dimensions, institutional and social environment and their impact on
green growth. The discussion indicates that there is a strong relationship between
institutional and social environment and green growthidentified in the literature. That
is, the institutional and social environment can promote countries’ green growth, or it
can hinder it, depending on their peculiar characteristics within the country.
Furthermore, literature review suggests that weak institutions, non-functioning rule of
law, high level of corruption and distrust in the society can be detrimental for economic
and green growth in particular. In the course of transition, all those deviations
developed in the Western Balkan Countries, affecting the environment and
deteriorating the living standards. In the effort to reconcile the reality with the
requirements of green economy and EU accession criteria, institutional and social
setting in Balkan economies needs to develop much further in order to accommodate
the requirements of structural and economic changes, but also green economy
principles. Offering the systematic literature review, the paper gives the avenues for
further research and pinpoints the necessity of data needed for the empirical analyses
for the case of Balkan countries. Finally, the analysis on the institutional and social
environments highlighted that the role of the corruption in green growth, that
sometimes can have greater impact than those of the governmental and legal aspects.
This seems to be especially relevant point of future research for the case of Balkan
countries.

Item Type:	Article
Subjects:	Scientific Fields (Frascati) > Social Sciences > Economics and Business Scientific Fields (Frascati) > Social Sciences > Other social sciences
Divisions:	Faculty of Economics
Depositing User:	Prof. d-r Natasha Trajkova
Date Deposited:	10 Jul 2023 08:39
Last Modified:	10 Jul 2023 08:39
URI:	https://eprints.uklo.edu.mk/id/eprint/8518

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