THE GOVERNMENT EFFECTIVENESS DRIVERS AND GROWTH. EMPIRICAL EVIDENCE FROM CEE COUNTRIES

In this paper, we focus on government effectiveness and its determinants that conduct to social fairness and wellbeing of the citizens of the states, more efficient tax administration, and enhancing human development. Our research aims to examine the relationship between government effectiveness and economic growth presenting the theoretical point of view and we provide empirical evidence carried out by OLS regressions on panel data for eleven economies of the Central and Eastern Europe that are members of the European Union, covering the period of time from 2000 to 2017. Complete answers on all the explanatory factors of government effectiveness are not likely to be certain but, overall, the evidence strongly supports that government effectiveness is associated with the economic growth within a country.