Impact of the Public Administration Reform on the Economic Development of the Western Balkans

The aim of this paper is to research the impact of a public administration reform on the economic development of the Western Balkan (WB) countries. The research covers a ten-year period (2009 - 2019), and is conducted on a sample of 19 countries (so called New EU Member States, Turkey and 6 countries from the WB). The paper attempts to quantify the effect that the public administration reform has on the two variables of economic development, namely the real GDP Growth Rate and Trade Per Capita, in the context of analysis and impact of six governance indicators created by the World Bank, within the WGI (The Worldwide Governance Indicator). In order to prove the hypotheses, we used the dynamic panel method. The results show that there is a significant positive impact of public administration reform in the WB on the GDP growth and trade.