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Abstract
Employing correlation analysis, we investigate whether rural development in the
EU countries is associated with their institutional quality represented by “good” governance
indicators of the World Bank (voice and accountability, political stability, government
effectiveness, regulatory quality, control of corruption). Generally, our results provide
empirical support for the view that better nation-state governance goes hand in hand with
better performance of rural economy and show that in new member states those relationships,
in many cases, are stronger than in the oldest ones. Improving government quality in new
member states would help their rural areas to achieve better convergence with the EU-15.